CBO Report: Federal Deficit Decreasing, But Will Rise With Baby Boomer Retirement

According to the Congressional Budget Office’s report focused on the decrease in the federal deficit, Medicare reimbursements grew modestly in 2014. In the report, titled “The Budget and Economic Outlook: 2015 to 2025,” researchers said there is a deficit of $468 billion expected for the budget year. This figure is down from last year’s $483 billion deficit. Additionally, the report found that the number of Americans without health insurance is expected to drop from 42 million to 36 million this year, approximately 19 million fewer people than would have been uninsured in the absence of the ACA. By 2019, the law insurance’s provisions will cost an estimated $571 billion, which is down $139 billion from initial estimates. The CBO also found that Medicare spending grew at a “modest rate” in 2014. In 2015, gross Medicare spending will total $622 billion, or 3.5 percent of GDP, the same share as in 2014. By 2025, Medicare spending will reach nearly $1.2 trillion. After 2018, federal deficits are expected to increase as more baby boomers retire and enroll in Social Security and Medicare.

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