Overview of the Medicare and Medicaid programs

The latest update of the annual projections of national health spending consists of projections from 2002-2012. These projections are made using national health expenditure (NHE) historical data through 2001, which were released by CMS in January 2003. The Medicare and Medicaid projections and economic and demographic assumptions are based on the 2002 Medicare Trustees Report and the 2002 Old-Age and Survivors Insurance and Disability Insurance Trustees Report, updated with available information through November 2002. NHE are projected to reach $3.1 trillion in 2012, up from $1.4 trillion in 2001. Medicare covers 95% of the nation's aged population, as well as many people who are on Social Security because of disability. In 2002, Medicare hospital insurance (HI) covered about 40 million enrollees with benefit payments of $149.9 billion, and supplementary medical insurance (SMI) covered 38 million enrollees with benefit payments of $111 billion. Medicare and Medicaid statistics are presented in a series of charts, graphs, and tables.