On March 22, David M. Walker, Comptroller General of the United States, testified before the Senate Finance Committee on the need to reform Medicare. "We must capitalize on momentum gathering in this Committee and elsewhere to take action to adopt effective cost containment reforms alongside potential benefit expansions," Walker said. "It is important that any benefit expansion efforts be coupled with adequate program reforms so as not to worsen Medicare's long-range financial condition."

Although Medicare's short-term outlook has recently improved, the Comptroller stressed that this should not distract Congress from focusing on the more important long-term perspective. The Medicare Trustees and the Congressional Budget Office (CBO) now agree that spending will grow faster than was previously predicted. 

At the same time, fiscal discipline imposed through the Balanced Budget Act of 1997 (BBA) continues to be challenged, while interest in modernizing the Medicare benefits package to include prescription drug coverage has increased. "As a result, the need for meaningful Medicare reform is even clearer today."