Because of its size and political impact, Medicare will rankhigh on the domestic policy agenda of any incoming administration.When that administration assumes office in January 2005, Medicarewill account for more than 13 percent of total federal expenditures;the only larger domestic program will be Social Security, whichwill account for 21 percent.1 By fiscal year 2007, with thephase-in of the prescription-drug benefit, Medicare's shareof federal spending will increase to almost 16 percent. In short,the new administration will find the scope of any new initiativeslimited by the needs of the Medicare behemoth.
From the Department of Health Care Policy, Harvard Medical School; and the Department of Health Policy and Management, Harvard School of Public Health both in Boston; and the Kennedy School of Government, Harvard University, Cambridge, Mass.
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