In 2015 federal spending for major healthcare programs topped Social Security spending for the first time ever, according to the Congressional Budget Office's 200-plus-page report providing an economic outlook for the next decade.
Here are five things to know about healthcare in the 2015 budget.
1. Federal spending on Medicare, Medicaid, the Children's Health Insurance Program and subsidies offered through the health insurance exchanges under the Affordable Care Act totaled $936 billion in 2015, an increase of $105 billion or about 13 percent, from 2014.
2. Comparatively, spending for Social Security clocked in at $882 billion in 2015, a $37 billion or 4 percent increase over 2014.
3. Medicaid spending grew the most in 2015, by $48 billion, or 16 percent. This is compared to 2014, when Medicaid spending grew $36 billion or 14 percent. This sharp uptick in Medicaid spending can be attributed to optional Medicaid expansion under the ACA. Last year the average monthly enrollment of Medicaid beneficiaries grew 55 percent in 2015.
4. Health insurance subsidy spending grew $23 billion in 2015, to $38 billion, due to increased enrollment through the exchanges and the availability of subsidies for an entire fiscal year. In 2014, subsidies became available three months into the fiscal year, according to the CBO.
5. Medicare spending grew $34 billion, or about 7 percent, from 2014 to 2015. While not the greatest increase among mandatory health programs, this is the fastest growth rate for Medicare since 2009, according to the CBO. This is due in part to a 3 percent growth in the number of Medicare beneficiaries and growth in the number or cost of services provided to these beneficiaries. The CBO also credited the increase to statutory changes that reduced the growth rate of Medicare spending that had previously been implemented and no longer have an effect on reducing the growth rate.
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