Medicare Spending to Climb 7 Percent Each Year After 2018 — With Nearly Five Percentage Points Reflecting Cost Growth

A new forecast by the Congressional Budget Office (CBO) expects Medicare spending to increase to $1.2 trillion by 2028, reports Becker's Hospital CFO Report . CBO attributes the current slow spending growth to higher premium revenue, and predicts Medicare enrollment will climb by 2.7 percent this year, versus 2.6 percent last year. For 2019-2028, the office says Medicare spending will rise an average of 7 percent annually, "driven by the rising per-beneficiary costs of medical care." CBO specifies that cost growth reflects almost 5 percentage points of the gain, while increasing enrollment only accounts for the rest. In addition, Medicaid's government cost should be higher mostly on account of rising per-capita costs. After 2018, CBO expects Medicaid spending will grow at an average rate of 5.5 percent yearly. Only 1 percent of the spending reflects growth in enrollment, while almost 5 percent is due to cost.