Medicare

Rapid Spending Growth Calls for More Prudent Purchasing Gao ID: T-HEHS-95-193 June 28, 1995

Last year, federal spending for Medicare totaled $162 billion--more than $440 million a day. In March 1995, the Congressional Budget Office estimated that these outlays would approach $350 billion by 2002. In 2005, they could exceed $460 billion unless changes are made. This testimony discusses ways in which the Medicare program could avoid excessive or unnecessary spending. GAO examines areas of rapid spending growth and ways to conserve program dollars--mainly by revising reimbursement policies and better controlling unwarranted use of services.



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