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Monitoring health spending increases: incremental budget analyses reveal challenging tradeoffs.

Hartman M, Smith C, Heffler S, Freeland M - Health Care Financ Rev (2006)

Bottom Line: With each passing decade, health care has consumed a larger share of gross domestic product (GDP) and Federal budgets.The financing challenges are expected to become more acute for private payers as well as Federal, State, and local budgets.With the implementation of Part D in 2006, the U.S. Office of Management and Budget projects that Federal budget pressures will heighten, bringing increased attention to Medicare's long-term fiscal outlook.

View Article: PubMed Central - PubMed

Affiliation: Office of the Actuary, Centers for Medicare & Medicaid Services (CMS), Baltimore, MD 21244-1850, USA. Micah.Hartman@cms.hhs.gov

ABSTRACT
With each passing decade, health care has consumed a larger share of gross domestic product (GDP) and Federal budgets. By the 2000-2004 period, society was willing to devote over 20 percent of the cumulative increase in GDP and the cumulative increase in Federal outlays towards health care. The financing challenges are expected to become more acute for private payers as well as Federal, State, and local budgets. With the implementation of Part D in 2006, the U.S. Office of Management and Budget projects that Federal budget pressures will heighten, bringing increased attention to Medicare's long-term fiscal outlook.

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Federal Medicare and Medicaid Expenditures as a Share of Total Outlays: Federal Fiscal Years 1980-2011
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f4-hcfr-28-1-041: Federal Medicare and Medicaid Expenditures as a Share of Total Outlays: Federal Fiscal Years 1980-2011

Mentions: The increase in the Federal budget, projected to be comprised of Federal Medicare and Medicaid payments, is over 91 percent in FY 2007 and nearly 60 percent in FY 2008, respectively (Figure 4). Medicare is expected to account for nearly 80 percent of this increase in FY 2007 as the Medicare prescription drug benefit becomes fully effective. According to OMB projections this may be partly responsible for a reduction of other spending in the short term, including defense (minus 1.5 growth in FY 2007 and minus 6.3 percent growth in FY 2008), and education, training, employment, and social services (minus 20 percent growth in FY 2007). Medicare's share of the budget is expected to jump, from 12 percent in FY 2005 to 14 percent in FY 2008, a $106 billion increase. Part of this increase can be attributed to a shift in spending from Medicaid to Medicare, as the Medicare Program picks up prescription drug spending for the dually eligible population.3 Even before this benefit was added, promised Medicare benefits were absorbing increasing marginal shares of Federal outlays for FYs 2004 and 2005.


Monitoring health spending increases: incremental budget analyses reveal challenging tradeoffs.

Hartman M, Smith C, Heffler S, Freeland M - Health Care Financ Rev (2006)

Federal Medicare and Medicaid Expenditures as a Share of Total Outlays: Federal Fiscal Years 1980-2011
© Copyright Policy
Related In: Results  -  Collection

Show All Figures
getmorefigures.php?uid=PMC4194975&req=5

f4-hcfr-28-1-041: Federal Medicare and Medicaid Expenditures as a Share of Total Outlays: Federal Fiscal Years 1980-2011
Mentions: The increase in the Federal budget, projected to be comprised of Federal Medicare and Medicaid payments, is over 91 percent in FY 2007 and nearly 60 percent in FY 2008, respectively (Figure 4). Medicare is expected to account for nearly 80 percent of this increase in FY 2007 as the Medicare prescription drug benefit becomes fully effective. According to OMB projections this may be partly responsible for a reduction of other spending in the short term, including defense (minus 1.5 growth in FY 2007 and minus 6.3 percent growth in FY 2008), and education, training, employment, and social services (minus 20 percent growth in FY 2007). Medicare's share of the budget is expected to jump, from 12 percent in FY 2005 to 14 percent in FY 2008, a $106 billion increase. Part of this increase can be attributed to a shift in spending from Medicaid to Medicare, as the Medicare Program picks up prescription drug spending for the dually eligible population.3 Even before this benefit was added, promised Medicare benefits were absorbing increasing marginal shares of Federal outlays for FYs 2004 and 2005.

Bottom Line: With each passing decade, health care has consumed a larger share of gross domestic product (GDP) and Federal budgets.The financing challenges are expected to become more acute for private payers as well as Federal, State, and local budgets.With the implementation of Part D in 2006, the U.S. Office of Management and Budget projects that Federal budget pressures will heighten, bringing increased attention to Medicare's long-term fiscal outlook.

View Article: PubMed Central - PubMed

Affiliation: Office of the Actuary, Centers for Medicare & Medicaid Services (CMS), Baltimore, MD 21244-1850, USA. Micah.Hartman@cms.hhs.gov

ABSTRACT
With each passing decade, health care has consumed a larger share of gross domestic product (GDP) and Federal budgets. By the 2000-2004 period, society was willing to devote over 20 percent of the cumulative increase in GDP and the cumulative increase in Federal outlays towards health care. The financing challenges are expected to become more acute for private payers as well as Federal, State, and local budgets. With the implementation of Part D in 2006, the U.S. Office of Management and Budget projects that Federal budget pressures will heighten, bringing increased attention to Medicare's long-term fiscal outlook.

Show MeSH