June 29, 2001

Medicare Spending Increases in FY 2001

A recent Department of Treasury monthly statement of federal receipts and outlays indicates that Medicare spending has increased by 7.6 percent in the first eight months of fiscal year 2001 compared the previous year. Part A spending has risen 6.6 percent, while Part B outlays have increased 9.1 percent.

Total program spending was $153.4 billion from Oct. 1, 2001, through May 31, 2001. Part A spending rose from $85.5 billion in the first eight months of FY 2000 to $91.1 billion in the same period of FY 2001.

While the Treasury statement did not say why Medicare spending has increased, the Congressional Budget Office has said that spending is likely to increase due to Medicare "giveback" packages to providers enacted in 1999 and 2000.

Information: Lynne L. Davis, AAMC Office of Governmental Relations, 202-828-0526.