Presentation on theme: "Medicare spending is 14% of the federal budget Total Federal Spending in 2013: $3.5 Trillion MEDICARE Medicaid Net interest Social Security Defense Nondefense."— Presentation transcript:
Medicare spending is 14% of the federal budget Total Federal Spending in 2013: $3.5 Trillion MEDICARE Medicaid Net interest Social Security Defense Nondefense discretionary Other NOTE: All amounts are for federal fiscal year 2013. 1 Consists of Medicare spending minus income from premiums and other offsetting receipts. 2 Other category includes spending on other mandatory outlays minus income from offsetting receipts. SOURCE: Congressional Budget Office, Updated Budget Projections: 2014 to 2024 (April 2014).
Nearly one-fourth of Medicare spending is for hospital inpatient services Total Medicare Benefit Payments in 2013: $583 billion Hospital inpatient Medicare Advantage Other services Hospital outpatient Post-acute care Outpatient prescription drugs Physician payments NOTE: Other services consists of Medicare benefit spending on hospice, durable medical equipment, Part B drugs, outpatient dialysis, ambulance, lab services, and other Part B services; also includes the effect of sequestration on spending for Medicare benefits and amounts paid to providers and recovered. SOURCE: Congressional Budget Office, 2014 Medicare Baseline (April 2014).
Medicare is on track to spend ~$1,200 less per person in 2014 than was projected in 2010, and ~$2,400 less in 2019 FOR 2019 -$2,436 SOURCE: Kaiser Family Foundation analysis of mandatory Medicare outlays and Medicare enrollment data from CBO Medicare baseline projections, 2010-2014; 2014 estimates based on August 2014 baseline. FOR 2014 -$1,209 2010 PROJECTION UPDATED 2014 PROJECTION
Medicare spending per person is expected to grow more slowly than private health insurance spending from 2013 to 2022 SOURCE: Kaiser Family Foundation analysis of Medicare spending and enrollment data from 2014 Annual Reports of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds (July 2014), adjusted for the cost of a 0% update to the Sustainable Growth Rate for physician payments per Congressional Budget Office, Medicare's Payment to Physicians: the Budgetary Impact of Alternative Policies Relative to CBO's May 2013 Baseline updated for Final Rule (December 2013); and analysis of private health insurance spending and enrollment data from Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group, National Health Expenditure Projections 2013-2023 (September 2014)
Total Medicare spending is projected to grow faster in the second half of the coming 10 years than the first half SOURCE: Kaiser Family Foundation analysis of Medicare mandatory outlays from Congressional Budget Office, An Update to the Budget and Economic Outlook: 2014 to 2024 (August 2014).
Medicare spending is projected to grow as a share of the economy NOTE: Estimates are net Medicare spending as percentages of gross domestic product (GDP), based on the extended alternative fiscal scenario, under which Medicare’s physician payment rates would be maintained at current levels, rather than reduced. SOURCE: Congressional Budget Office, The 2014 Long-Term Budget Outlook (July 2014).
SOURCE: Intermediate projections from 2005-2014 Annual Reports of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds. The outlook for the Medicare hospital trust fund has improved, but it is projected to have insufficient funds to pay all hospital bills beginning in 2030 Year of Projection