CBO Says Federal Health Care Spending Will More Than Double in Decade

Federal spending on Medicare, Medicaid and other government health care programs will increase by more than 200% over the next decade, according to a new Congressional Budget Office report, The Hill's "Healthwatch" reports.

The report estimated that spending will increase from $810 billion in 2010, or 5.8% of gross domestic product, to $1.8 trillion in 2021, or 7.4% of GDP.

The report stated that Medicare spending could increase by $250 billion over the next 10 years, unless Congress develops a permanent solution to the program's physician reimbursement formula. CBO also estimated faster growth in Medicaid enrollment because of a program expansion under the federal health reform law.

The agency's 2010 health spending report estimated that 76 million U.S. residents would be enrolled in Medicaid by 2020, while the 2011 report predicts enrollment will be nearer to 97 million in 2021 (Millman, "Healthwatch," The Hill, 1/26).