Pace of Medicare Spending is Slowing
The White House has just released the annual Economic Report of the President; which featured an interesting graph detailing the projected amount that Medicare spending will account for in the total GDP between 2013 and 2085.
Based on the rate of growth in Medicare spending prior to 2009, estimates had indicated that Medicare spending would outpace the economy and eventually account for 7% of the total GDP by 2085. However, from 2009-present, the actual rate of Medicare spending has slowed considerably and is now growing at the same rate as the economy.
As discussed in the article, there is uncertainty about whether this slowdown in spending is solely attributable to the economic recession. However, the report presents some data that could indicate the slowdown in spending is a result of other factors, such as a decrease in hospital readmissions.
If this trend continues where the growth in Medicare spending remains consistent with the growth of the total economy, it could significantly re-orient the conversation about federal spending on healthcare.