The Facts on Medicare Spending and Financing

KFF: Jul 28, 2014

Overview of Medicare Spending

Medicare, the federal health insurance program for 54 million people ages 65 and over and people with permanent disabilities, helps to pay for hospital and physician visits, prescription drugs, and other acute and post-acute services. In 2013, spending on Medicare accounted for 14% of the federal budget (Exhibit 1). Medicare also plays a major role in the health care system, accounting for 20% of total national health spending in 2012, 27% of spending on hospital care, and 23% of spending on physician services.1 Read More