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. 1985 Spring;6(3):1–26.

Table 4. Medicare benefit payments, by type of service and administrative expenses: Selected years, 1970-901.

Calendar year Medicare benefits and administrative expenses Total Medicare benefits Hospital care Physicians' services Other professional services2 Eyeglasses and appliances Nursing home care Other personal health care Medicare administrative expenses
Amount in billions
Historical3
1970 $7.5 $7.1 $5.1 $1.6 $0.1 (5) $0.3 (5) $0.4
1973 10.1 9.6 7.1 2.1 0.1 $0.1 0.2 (5) 0.6
1975 16.3 15.6 11.5 3.4 0.2 0.1 0.3 $0.1 0.7
1979 30.3 29.3 21.2 6.5 0.5 0.3 0.4 0.4 1.0
1980 36.8 35.7 25.9 7.9 0.7 0.4 0.4 0.5 1.1
1981 44.8 43.5 31.3 9.7 0.8 0.5 0.4 0.6 1.3
1982 52.4 51.1 36.7 11.4 1.1 0.6 0.5 0.8 1.3
1983 58.8 57.4 40.4 13.4 1.5 0.8 0.5 0.9 1.4
Projected4
1985 75.7 74.1 52.4 16.6 2.2 1.2 0.6 1.1 1.6
1988 105.0 103.3 71.8 24.6 2.7 2.0 0.8 1.5 1.7
1990 131.3 129.5 89.5 31.5 3.2 2.5 0.9 1.8 1.7
Selected periods Average annual percent Change
1973-83 19.2 19.6 19.0 20.2 32.9 28.4 10.7 38.1 9.7
1979-83 18.0 18.3 17.5 19.8 28.7 30.0 9.5 20.3 8.3
1983-85 13.4 13.6 13.9 11.4 23.8 22.2 6.1 11.9 7.6
1983-88 12.3 12.5 12.2 12.9 12.7 19.1 8.1 11.7 3.9
1983-90 12.1 12.3 12.0 13.0 11.9 17.5 8.5 11.3 3.1
1

Service categories used in this table differ from those used in the annual reports of the Board of Trustees of the Federal Hospital Insurance and Supplementary Medical Insurance Trust Funds. For example, hospital-based home health services appear as hospital care rather than as home health services (which are included in other professional services).

2

Hospice benefits are included with other professional services. The benefit provision was effective November 1, 1983, and expires October 1, 1986.

3

Historical data are from Gibson, et al. (1984).

4

Projections are derived from Midsession Review of the 1985 Budget August 15, 1984. However, growth rates for 1984 were modified by the Medicare actuaries to reflect partial year experience. Projections of Medicare outlays are updated periodically through the year to reflect changes in regulations, revised forecasts of the economy, and program experience.

5

Less than $50 million.

SOURCE: Health Care Financing Administration, Office of Financial and Actuarial Analysis, Division of National Cost Estimates.