Under current law, spending on Medicaid is expected to substantially outpace the rate of growth in the U.S. economy over the next decade, according to a new annual report by the Centers for Medicare & Medicaid Services.
The report projects that Medicaid benefits spending will increase 7.3 percent from 2007 to 2008, reaching $339 billion, and will grow at an annual average rate of 7.9 percent over the next 10 years, reaching $674 billion by 2017. That compares to a projected rate of growth of 4.8 percent in the general economy.
"This report should serve as an urgent reminder that the current path of Medicaid spending is unsustainable for both federal and state governments. We must act quickly to keep state Medicaid programs fiscally sound," U.S. Department of Health and Human Services Secretary Mike Leavitt said. "If nothing is done to rein in these costs, access to health care for the nation's most vulnerable citizens could be threatened."
