Medicare Faqs

How Much Does the Government Contribute to Each Beneficiary’s Coverage Each Year?
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The amount that the government contributes per beneficiary can be calculated, on average, by dividing Medicare’s outlays by the number of beneficiaries. By contrast, the proportion of spending represented by different groups of beneficiaries varies greatly between those who are seriously ill and those who are healthy in any one year. So, for example, 25 percent of beneficiaries typically account for 80 percent of all Medicare spending. Among this group, more than 75 percent had one or more major chronic conditions. These costs vary greatly with the Medicare beneficiaries’ locations. Those living in higher spending areas receive 60 percent more care than other regions, and prices for common procedures varied greatly as well.


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