Spending on Medicare and Medicaid is expected to be roughly $100 billion less than previously anticipated over the next decade in large part because of reductions in the cost of labor and medical services, according to the latest analysis from the Congressional Budget Office (PDF).
Medicare spending is anticipated to be $71 billion less than previously projected, while Medicaid spending is expected to drop by $31 billion.
But overall healthcare spending is still anticipated to rise by $67 billion in 2014, a 9% increase. That's driven in large part by the expansion of Medicaid, with spending on the program expected to increase by $40 billion, or 15%, over 2014. Currently 26 states have opted to expand Medicaid eligibility to households with incomes up to 138% of the federal poverty threshold, as provided for under the Patient Protection and Affordable Care Act.