Entitlement Spending Will More Than Double by 2050

Pressure from entitlements, fueled by demographic changes and rising heath care costs, will cause federal spending to explode. Medicaid spending will more than double — increasing from 1.5 percent of GDP in 2005 to 3.1 percent in 2050. Medicare spending will more than triple — increasing from 2.7 percent of GDP in 2005 to 8.9 percent in 2050.

Spending on Social Security, Medicare, and Medicaid as a Percentage of GDP, 2005–2050

Source: Spending from CBO Long-Term Budget Outlook, December 2007 (Extended Baseline scenario).