Medicare & Medicaid Spending Projected to Increase Due to Higher Per Capita Costs, Not More Beneficiaries

OPEN MINDS Weekly News Wire Strategic Health Care News The Congressional Budget Office (CBO) projects that federal spending on Medicare and Medicaid will triple as a percentage of the nation’s gross domestic product (GDP) from four percent in 2009 to 12% in 2050 due to rising per capita costs, rather than the aging of the population. Spending on health care and related activities will account for about 17% of GDP in 2009, a total of $2.6 trillion, and is expected to reach 20% by 2017. Annual health expenditures per capita are projected to rise from about $8,300 . . .