Medicare spending grew 3 percent in the first 11 months of fiscal year 2017 — marking a slow in growth for one of the largest federal mandatory spending programs, according to the Congressional Budget Office's monthly budget review for August.
Spending for the program grew $16 billion for the first 11 months of the fiscal year, which the CBO said reflects "typical growth in the number of beneficiaries and in the cost of services for those beneficiaries." However, this growth is a marked slowdown from years prior. Average annual Medicare spending growth from 2010 to 2015 was 4.1 percent and from 2000 to 2010 was 9 percent, according to a brief from the AARP Public Policy Institute. Medicare spending grew nearly 7 percent in 2015, the largest jump since 2009, but aside from this uptick in growth, Medicare spending has trended down in recent years.
The August report also indicates Medicare spending growth may be lower than projected for this year. The January 2017 CBO projection suggested Medicare spending would grow 4.1 percent in 2017. Spending per Medicare enrollee was projected to grow at an average annual rate of 4.3 percent between 2017 and 2027.
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