CBO updates Medicare and Medicaid spending projections
Posted on August 22, 2012 | No Comments
The Congressional Budget Office (CBO) released today a new report which found that Medicare and Medicaid spending are expected to grow to a larger share of the nation’s economy over the next decade and the Affordable Care Act’s (ACA’s) insurance subsidies will drive mandatory spending even higher. The report updates CBO’s budget and economic outlook.
CBO found that found that Medicare spending will grow from 3.7 percent of GDP in 2013 to 4.3 percent by 2022 and that Medicaid spending will increase from 1.7 percent of GDP in 2013 to 2.4 percent in 2022. These new projections account for the Supreme Court’s momentous June 28th decision regarding the constitutionality of the ACA. All together, CBO found that Medicare, Medicaid, and Social Security would account for 12.2 percent of GDP in 2022, or 55 percent of federal spending.
- The low-income subsidy (LIS) for Part D of Medicare (the part of Medicare that provides prescription drug benefits),
- The refundable portion of the earned income tax credit (EITC),
- The refundable portion of the child tax credit (CTC),
- Supplemental Security Income (SSI),
- Temporary Assistance for Needy Families (TANF),
- The Supplemental Nutrition Assistance Program (SNAP, formerly called the Food Stamp program),
- Child nutrition programs,
- Housing assistance programs, and
- The Federal Pell Grant Program.
- Medicare eligibility, beneficiary costs, and program financing;
- Medicare payments to providers and plans;
- Delivery system reform and care for high-need beneficiaries;
- Medicare program structure; and
- Medicare program administration, including program integrity.