Medicare spending will reach $698 billion in 2014, up almost 155% from $274 billion in 2003, according to new estimates from the Congressional Budget Office. By 2014, Medicare spending will represent almost 4% of the gross domestic product and 19% of all federal spending, the CBO said. The sustainable growth formula used to calculate physician payment increases will not keep pace with inflation beginning in 2006, unless Congress takes action as it did last year, according to the CBO analysis. The new Medicare reform law, which created a prescription drug benefit, will add $395 billion in mandatory spending to the program between 2004 and 2013. Overall, new Medicare spending will equal $758 billion over the 10 years, the CBO projected. That will be partially offset by an estimated $363 billion in additional premium payments by Medicare beneficiaries. -- by Jeff Tieman
Medicare to be $698 billion program by 2014: CBO
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.