Medicaid spending expected to rise by 5.6% this fiscal year

Share this article:

Medicaid spending is expected to expand by 5.6% for fiscal 2005, despite a projected drop in the federal budget deficit for the same time period. Spending for the program is expected to rise to $186 billion in fiscal 2005 compared to $176 billion in 2004, according to the Congressional Budget Office.

Similarly, Medicare spending should increase by 9.4%, to $325 billion, for fiscal 2005, from $297 billion in fiscal 2004, CBO said this week.

Medicaid and Medicare funding combined cover about 75% of all nursing home patients in America. Medicaid spending is estimated to skyrocket to $392 billion in 2015, an increase of 123% compared to 2004.

The deficit is projected to decrease to $368 billion in fiscal 2005. That compares to a deficit of $412 billion in fiscal 2004. The $368 billion, however, does not factor in spending for the conflicts in Iraq and Afghanistan.

Share this article:

More in News

Hospitals slap the government with lawsuits over 'two-midnight' policy to reduce observation stays

Hospitals slap the government with lawsuits over 'two-midnight' ...

The American Hospital Association and other hospital groups have sued the federal government over the so-called "two-midnight rule," which was designed in part to ease access to skilled nursing services.

Government would pay seniors to create advanced directives under Senate bill

Medicare beneficiaries would be paid to create advance directives and store them in an easy-access system if a recently proposed Senate bill were to become law.

MS patients less tense and pessimistic in nursing homes than at home, ...

Nursing home residents with severe multiple sclerosis report being less tense and pessimistic than similar individuals receiving care at home, according to recently published research findings.