A new report from the Urban Institute (pdf) concluded that spending growth in Medicare and Medicaid is heavily affected by enrollment, and the spending growth in both programs on a per enrollee basis is not "out of control" as some groups may suggest.
In the report, researchers found that between 2000 and 2010, Medicare spending grew as fast or faster than private health insurance expenses. However, Medicare enrollment increased due to the baby boomer population while private health coverage dropped due to the economic recession. On a per enrollee basis, Medicare's expenditure growth was lower than private health insurers' spending growth.
Medicare expenditures are expected to grow by 5.7 percent per year between 2011 and 2020, while private health expenditures are projected to grow at a near-identical rate (5.8 percent). Medicaid expenditures are expected to hit 8.7 percent per year over the same time span.
Because Medicare and Medicaid have and will continue to see large increases in their enrollments — due to the aging population and provisions in the Patient Protection and Affordable Care Act — their spending growth estimates are actually on target on a per enrollee basis, the researchers said. The findings also suggest that Medicare and Medicaid cost savings proposals such as premium support and fixed health stipends may only shift the cost burdens onto the rising number of Medicare and Medicaid enrollees instead of solving the long-term healthcare spending crisis.
In the report, researchers found that between 2000 and 2010, Medicare spending grew as fast or faster than private health insurance expenses. However, Medicare enrollment increased due to the baby boomer population while private health coverage dropped due to the economic recession. On a per enrollee basis, Medicare's expenditure growth was lower than private health insurers' spending growth.
Medicare expenditures are expected to grow by 5.7 percent per year between 2011 and 2020, while private health expenditures are projected to grow at a near-identical rate (5.8 percent). Medicaid expenditures are expected to hit 8.7 percent per year over the same time span.
Because Medicare and Medicaid have and will continue to see large increases in their enrollments — due to the aging population and provisions in the Patient Protection and Affordable Care Act — their spending growth estimates are actually on target on a per enrollee basis, the researchers said. The findings also suggest that Medicare and Medicaid cost savings proposals such as premium support and fixed health stipends may only shift the cost burdens onto the rising number of Medicare and Medicaid enrollees instead of solving the long-term healthcare spending crisis.
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