Accounting for Sources of Projected Growth in Federal Spending on Medicare & Medicaid

May 28, 2008 The Congressional Budget Office (CBO) sought to evaluate the sources of projected growth in federal spending for Medicare and Medicaid. Federal spending is estimated to increase from 4 percent of gross domestic product (GDP) in 2007 to 9 percent in 2032 and 19% in 2082. CBO noted that the bulk of the increase is estimated to come from higher health care costs and not just the greater numbers of beneficiaries that will become eligible for the program within 25 years. Half of the projected increases in federal Medicaid spending through 2032 is estimated to be due to . . .