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Past, present, future of Medicare spending

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    Jim Angle takes an in-depth look at the program

  • Duration 2:46
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Tomorrow is the deadline for states to say whether they will run their own health insurance exchanges so far just fifteen have agreed to do so.

That could leave the federal government on the hook to set up the exchanges and at least two thirds of the country.

Government funded health -- has a relatively short history in this country but it is piling up huge bills for future generations to -- Tonight chief national correspondent Jim Angle looks at the past present and future of Medicare spending.

The baby boom generation of the 1950s is reaching retirement and as the nation gets older and lives longer -- the cost of federal program for seniors are soaring.

-- Medicare costs are have risen even more dramatically -- securities over the years and I probably the single.

Biggest driver federal deficits going forward our health care -- -- programs are literally eating us alive.

If you look at just it's 433.

The combination of both Medicare other entitlement programs and interest will be as large as what we're raising in in total fat or -- -- all other functions of government from defense -- -- -- will be funded with borrowed money.

Those seniors pay premiums for some of its programs that isn't nearly enough to cover the cost the federal budget covers any shortage and the shortage will be huge.

-- those parts of Medicare.

Are going to exceed.

Taxes and incoming premium contributions by over twenty trillion dollars over the next 75 years.

The first year after it was created under president Lyndon Johnson in 1965.

The program only spent three billion dollars.

Even after Medicare was well under way in 1970 and only spent seven billion a year.

Now it's more than 560.

Million a year and the number of seniors is exploding in 1966.

Just after creation some nineteen million people were immediate beneficiaries by 1990 -- inclined to some 34 million.

By the year 2000 almost forty million.

Now it's more than fifty million and growing a huge burden for those still paying taxes.

Right now there's about three workers for every every beneficiary we're headed to two workers for beneficiary and that's that's a large burden cult though analysts say savings are imperative some lawmakers say no more changes after mr.

Obama cut Medicare by 760 billion dollars which Democrats call savings.

-- to break that into Medicare do.

Lengthen its.

Strengthened for at least a decade as well as increasing benefits now so we have addressed the issue of entitlement.

Medicare has several programs including coverage for doctors and prescription drugs the trust fund for hospital across however runs out of sufficient money -- 20/20 four so it has to be changed to be saved Brett.

More on that in a series next week Jim thank you.

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