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Capitol Health Call
September 13, 2006

Medicare Spending Slows

JAMA. 2006;296(10):1225. doi:10.1001/jama.296.10.1225-c

A Congressional Budget Office working paper concludes that “excess” growth in Medicare spending per beneficiary has slowed substantially in recent years.

The report, released August 3, said the annual rate of excess growth fell from 5.5% from 1975 to 1983 to 0.9% from 1992 to 2003 (http://www.cbo.gov/ftpdocs/74xx/doc7453/2006-08.pdf). Excess growth is defined as growth beyond the combination of the general rate of economic growth and the rate of change in the age composition of the beneficiary group.