Fast Facts about Medicare and Social Security

Romina Boccia and Dominik LettMedicare and Social Security are the two largest federal government programs that are also growing the fastest. They are fiscally unsustainable as currently structured. Medicare consists of four parts which provide inpatient care (Part A), outpatient care (Part B), prescription drug coverage (Part D), and subsidies for seniors to choose alternative health insurance providers through Medicare Advantage (Part C). Social Security consists of Old Age and Survivors Insurance (OASI) and Disability Insurance (DI). For the purposes of this fact sheet, Social Security will refer to OASI only. This fact sheet lays out key fiscal details legislators and the public should know about Medicare and Social Security to help them examine the unsustainability of these massive federal entitlement programs.Medicare is the second largest federal government program, spending$1 trillionin 2023, or an amount equal to3.8 percent of gross domestic product (GDP).Medicare spending will double to$2 trillion or 5.1 percent of GDP by 2033. That ’s twice what the U.S. government will spend on defense that year.65 million Americans receive Medicare at an average cost for taxpayers of$12,100 per beneficiary.Studies estimate thatone-third of Medicare spending provides no value: it makes patients no healthier or happier.Studies have found Medicare increased total hospital spending by37 percent over five years.Medicare is already contributing to federal deficits and facing increasi...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs