Comparing Long-run Medicare Spending Projections

The anticipated growth in future federal expenditures relative to federal income is largely driven by elderly entitlement growth. Social Security and Medicare benefits account for the bulk of these entitlements and will grow as a share of the economy as baby boomers transition into retirement.

State Reform of Medicaid Drug Programs

Medicaid is a joint federal-state program that provides medical care to more than 60 million low-income individuals and families. Medicaid rolls in many states have risen over the past several years as a result of the recession and continuing high unemployment. Indeed, in 2011 the average growth rate in Medicaid spending was about 6.1 percent.