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CBO: Medicare spending grows at slowest rate since 2000

February 6, 2013

Net outlays for Medicare grew by 3% in fiscal year 2012, the slowest rate since 2000, according to a report on the federal budget and economic outlook released yesterday by the Congressional Budget Office. Medicaid spending declined by 9% for the year, primarily because a temporary increase in the federal share of the program's costs expired, CBO said. For FY 2013, the report estimates Medicare outlays will increase by 4% and Medicaid outlays by 6%.