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Medicare Spending
January 27, 2000
SBSC's new Budget Watch report, "Reforming Medicare," points out just how costly the program is. Just consider the following: From 1968 to 1998, Medicare spending rose at an annual average rate of 14.8%, versus an average increase of 5.3% in the consumer price index. As a share of the federal budget, Medicare grew from 2.2% in 1967 to 12.9% in 1998. As a share of GDP, Medicare spending grew from 0.41% in 1967 to 2.53% in 1998. Medicare Part A has generated 36 payroll tax increases, while the major financing of Medicare Part B grew from 50% from premiums and 50% from general tax revenues in 1967, to 24% from premiums and 76% from the taxpayers in 1998. This and Medicare's other ills point to the need for a Medicare overhaul. To get the entire story, read SBSC's "Reforming Medicare." |
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