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Health

The federal budget is on an unsustainable path, primarily because of the rising cost of health care.

Projected Federal Spending Under One Fiscal Scenario
(Percentage of gross domestic product)
This figure, an area chart, shows federal spending from 1962 through 2082 under one scenario for Medicare and Medicaid, Social Security, and all other programs (excluding debt service). Most prominently, net federal spending on Medicare and Medicaid rises from 4 percent of gross domestic product in 2007 to almost 20 percent in 2082.

Inside CBO

Experts from across the agency come together to analyze health care: estimating the budgetary impacts of federal health care programs, preparing studies of health policy issues, and estimating the budgetary and other effects of proposals to alter the health care system. Two units in the Budget Analysis Division focus particularly on estimating the cost of proposed health care legislation and projecting spending for federal health care programs. The Health and Human Resources Division conducts studies of health issues, including Medicare, Medicaid, pharmaceuticals, public health, and private health markets; it also develops models that underlie cost estimates. The National Security Division conducts studies of the health care provided by the Departments of Defense and Veterans Affairs. The Microeconomic Studies Division also analyzes health issues, especially those related to competition or market structure, including most recently prescription drug pricing and research and development in the pharmaceutical industry.

Panel of Health Advisers

Consisting of acknowledged experts in health care, CBO's panel of health advisers meets periodically to examine research in health policy and to advise the agency on its analyses of health care issues. The panel thus helps to further the reliability, professional quality, and transparency of the agency's work.
More on Panel of Health Advisers

Health Jobs at CBO

CBO continually seeks health economists, analysts, and research assistants for health-related programs.
More on Job Opportunities

Health Policy Internship

CBO has also devoted an internship to health policy, which is for graduate students. It may be available on a summer, semester, or year-long basis depending on work needs and students' availability.
More on Health Policy Internship

From the Director

Work on legislation to transform the nation's health care system is under way in the 111th Congress. Few issues in recent years have been as complex and comprehensive, with such far-reaching effects for all Americans. It is one of CBO's top priorities to analyze Congressional proposals to change the health care system and to help the Congress understand their effects.

Spending on health care and insurance consumes an ever-increasing share of gross domestic product, while roughly 45 million Americans lack health insurance. CBO's Key Issues in Analyzing Major Health Insurance Proposals provides useful background information and insights into how the agency will estimate the effects that Congressional proposals to address those problems would have on the federal budget, spending for health care, and the number of people who have health insurance coverage.

A second volume--Budget Options, Volume 1: Health Care--presents more than 100 specific options for reducing (and, in some cases, increasing) federal spending on health care, altering federal health care programs, and making substantive changes to the nation's health insurance system. They represent a significant but not exhaustive list of possible choices. The options come from a variety of sources, including Congressional staff, legislative proposals, the President's budget, academic literature; and analyses conducted by CBO staff, other government agencies, and private groups.

As bills move forward in the legislative process, CBO will prepare estimates of their costs and other effects. You will be able to find those analyses here.

Cost Estimates

More Health Cost Estimates

Publications

More Health Publications

Supplemental Info

Children's Health Insurance Program Baseline

Health IT Direct Spending and Revenues

Health: President's Proposals

Medicaid Baseline

Medicare Baseline

Physician Payment Rate Options