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Medicare’s financial problems affect the entire budget, and are largely responsible for projected increases in federal deficits.
The rapid growth in health care costs is the largest and fastest growing fiscal challenge.
Controlling our structural budget deficits will require major changes in budget policy.
The report focuses on the fiscal conditions in six heavily populated states which together account for a third of the nation's population and almost 40 cents of every dollar in spending by state and local governments.
Most Medicaid dollars are spent on disabled and elderly beneficiaries, whose incomes and financial resources are low enough to qualify for the program.
Who Pays For Medicare?
The Trustees warn that Congress and the Administration should work "with a sense of urgency" to put the program on a sustainable path.
The United States healthcare system is the most expensive in the world, and our healthcare costs are projected to keep rising. Despite these high costs, our health outcomes are generally no better than those of our peers, and in some cases are worse.
The 2014 Trustees Reports make clear that essential programs, like Social Security and Medicare, are on an unsustainable path.