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Health Care on a Budget: The Financial Burden of Health Spending by Medicare Households

The Medicare program offers health and financial protection to nearly 50 million seniors and younger people with disabilities, though many beneficiaries still face significant out-of-pocket expenses. This analysis examines how much Medicare households spend on health-related expenses compared to other spending priorities and compared to non-Medicare households, the extent to which Medicare households’ health spending as a share of household budgets varies by age and poverty level, and changes in Medicare households’ health spending over time.

The Facts on Medicare Spending and Financing

This fact sheet provides an overview of spending on the Medicare program and how the program is financed. It examines historical, recent, and future trends in Medicare spending, including the recent slowdown partially attributable to provisions in the Affordable Care Act of 2010, and includes the latest available data on Medicare financing.