The gross domestic product (GDP) is the total value in dollars of the goods and services produced in the United States. The rate of positive or negative growth in the GDP is often used as a measure of the health of the economy. The relationship of the growth rate of Medicare spending to GDP and the percentage of Medicare spending as a proportion of GDP are two measures often used in discussions of the health and sustainability of the Medicare program.
Total health care spending has increased steadily as a proportion of the GDP since the end of World War II. Medicare???s spending has increased during the last 40 years at a rate somewhat less than that of private health care spending, but as the baby boomer generation enters Medicare, its proportion of the GDP will rise until that population declines.
The Congressional Budget Office projects that, in the long run, Medicare spending will decrease as a share of total spending on health care.
Why Is Medicare Spending Considered to Be Unsustainable?
What Are the Key Drivers of Medicare Spending Growth?
What Type of Services and Which Beneficiaries Account for the Largest Portion of Medicare Spending?
How Much Does Medicare Cost? How Much Is It Expected to Cost in the Future?
What Does Medicare Have to Do With the Federal Budget Deficit?
What Percentage of Federal Outlays Does Medicare Represent?