Reducing Hospital Costs Without Hurting Patients

Medicare, Medicaid and the Children’s Health Insurance Program (CHIP) comprise almost a quarter of all federal outlays in 2023: Medicare accounts for 13 percent of outlays, while Medicaid and CHIP together account for another 10 percent. This presents a significant challenge, as the Congressional Budget Office (CBO) projects that over the next decade both Medicare and Medicaid will grow faster than the economy as a whole, effectively crowding out other programs and national policy priorities.