Medicare 1
Medicare 2
HOSPITAL INSURANCE TRUST FUND - INCOME, OUTGO, AND BALANCE: 1966-2009
                  (in billions of dollars)
-------------------------------------------------------------
                                                     Maximum
                  Total    Total     Fund   HI Tax  Earnings
Year       GDP    Outgo   Income  Balance     Rate     Taxed
----  --------  -------  -------  -------  -------  --------
1966     755.8      0.1      0.9      0.9     0.35      6600
1967     810.2      2.6      3.1      1.3     0.50      6600
1968     868.5      3.8      3.9      1.4     0.60      7800
1969     948.3      4.8      5.3      2.0     0.60      7800
1970    1012.9      5.0      5.6      2.7     0.60      7800
1971    1080.3      5.6      6.0      3.1     0.60      7800
1972    1176.9      6.3      6.0      2.9     0.60      9000
1973    1311.0      6.8      8.4      4.4     1.00     10800
1974    1438.9      8.1     11.6      7.9     0.90     13200
1975    1560.8     10.6     12.6      9.9     0.90     14100
1976    1738.8     12.6     13.5     10.8     0.90     15300
1977    1974.4     15.2     15.4     11.1     0.90     16500
1978    2218.3     17.9     18.5     11.8     1.00     17700
1979    2502.4     20.3     21.9     13.4     1.05     22900
1980    2725.4     24.3     25.4     14.5     1.05     25900
1981    3058.6     29.2     32.9     18.1     1.30     29700
1982    3225.5     34.9     37.6     20.8     1.30     32400
1983    3442.7     38.6     43.9     13.8     1.30     35700
1984    3846.7     42.3     45.7     17.2     1.30     37800
1985    4148.9     48.7     50.9     21.3     1.35     39600
1986    4406.7     49.7     56.4     38.7     1.45     42000
1987    4654.4     50.8     62.7     50.6     1.45     43800
1988    5011.9     52.7     68.0     65.9     1.45     45000
1989    5401.7     58.2     75.1     82.8     1.45     48000
1990    5737.0     66.7     79.6     95.6     1.45     51300
1991    5934.2     70.7     85.0    109.9     1.45    125000
1992    6240.6     82.0     92.7    120.6     1.45    130200
1993    6578.4     91.6     95.3    126.1     1.45    135000
1994    6964.2    102.8    106.2    129.6     1.45    no max
1995    7325.1    114.9    114.8    129.5     1.45       :
1996    7697.4    127.7    123.5    125.3     1.45       :
1997    8186.6    137.9    128.5    116.0     1.45       :
1998    8626.3    137.3    138.2    116.9     1.45       :
1999    9127.0    131.5    153.0    138.4     1.45       :
2000    9708.4    130.0    159.7    168.1     1.45       :
2001   10040.7    142.9    172.2    197.4     1.45       :
2002   10373.4    148.0    179.7    229.1     1.45       :
2003   10828.3    153.8    175.8    251.1     1.45       :

2004*  11466.0    169.3    178.9    260.7     1.45       :
2005*  12042.4    184.5    195.2    271.3     1.45       :
2006*  12641.1    188.2    205.0    288.1     1.45       :
2007*  13279.1    197.6    216.9    307.4     1.45       :
2008*  13972.6    207.2    229.3    329.4     1.45       :
2009*  14701.6    218.8    241.7    352.2     1.45       :

======================================================================
HOSPITAL INSURANCE TRUST FUND - INCOME, OUTGO, AND BALANCE: 1966-2009
  (in billions of 2000 dollars - Maximum Earnings in 2000 dollars)
----------------------------------------------------------------------
                                                     Maximum Composite
                  Total    Total     Fund   HI Tax  Earnings    Outlay
Year       GDP    Outgo   Income  Balance     Rate     Taxed  Deflator
----  --------  -------  -------  -------  -------  --------  --------
1966    3828.8      0.3      4.6      4.3     0.35   33434.7    0.1974
1967    3999.0     12.8     15.2      6.6     0.50   32576.5    0.2026
1968    4129.8     18.1     18.6      6.8     0.60   37089.9    0.2103
1969    4252.5     21.3     24.0      9.0     0.60   34977.6    0.2230
1970    4286.5     21.0     23.8     11.3     0.60   33008.9    0.2363
1971    4288.6     22.2     23.9     12.3     0.60   30964.7    0.2519
1972    4375.1     23.3     22.4     10.6     0.60   33457.2    0.2690
1973    4627.6     24.2     29.5     15.4     1.00   38122.1    0.2833
1974    4687.0     26.3     37.8     25.8     0.90   42996.7    0.3070
1975    4612.3     31.4     37.1     29.2     0.90   41666.7    0.3384
1976    4776.9     34.6     37.2     29.8     0.90   42033.0    0.3640
1977    5018.8     38.7     39.1     28.3     0.90   41942.0    0.3934
1978    5288.0     42.6     44.2     28.1     1.00   42193.1    0.4195
1979    5497.4     44.7     48.1     29.4     1.05   50307.6    0.4552
1980    5419.4     48.3     50.5     28.8     1.05   51501.3    0.5029
1981    5499.1     52.6     59.1     32.5     1.30   53398.1    0.5562
1982    5413.7     58.5     63.1     35.0     1.30   54380.7    0.5958
1983    5512.7     61.7     70.4     22.1     1.30   57165.7    0.6245
1984    5868.3     64.5     69.8     26.3     1.30   57665.9    0.6555
1985    6118.4     71.8     75.1     31.4     1.35   58398.5    0.6781
1986    6343.3     71.5     81.2     55.7     1.45   60457.8    0.6947
1987    6516.0     71.1     87.8     70.8     1.45   61318.8    0.7143
1988    6810.6     71.7     92.4     89.5     1.45   61149.6    0.7359
1989    7078.6     76.3     98.4    108.4     1.45   62901.3    0.7631
1990    7278.6     84.6    100.9    121.3     1.45   65085.0    0.7882
1991    7214.0     86.0    103.4    133.6     1.45  151957.2    0.8226
1992    7335.0     96.3    108.9    141.8     1.45  153032.4    0.8508
1993    7539.7    105.0    109.2    144.6     1.45  154727.8    0.8725
1994    7823.2    115.4    119.3    145.5     1.45    no max    0.8902
1995    8031.9    126.0    125.9    142.0     1.45       :      0.9120
1996    8251.9    136.9    132.4    134.4     1.45       :      0.9328
1997    8610.2    145.0    135.2    122.0     1.45       :      0.9508
1998    8982.9    143.0    143.9    121.7     1.45       :      0.9603
1999    9362.9    134.9    157.0    142.0     1.45       :      0.9748
2000    9708.4    130.0    159.7    168.1     1.45       :      1.0000
2001    9811.1    139.6    168.3    192.9     1.45       :      1.0234
2002    9966.8    142.2    172.7    220.1     1.45       :      1.0408
2003   10192.3    144.8    165.5    236.3     1.45       :      1.0624

2004*  10597.0    156.5    165.4    240.9     1.45       :      1.0820
2005*  10938.7    167.6    177.3    246.5     1.45       :      1.1009
2006*  11190.8    166.6    181.4    255.1     1.45       :      1.1296
2007*  11525.0    171.5    188.2    266.8     1.45       :      1.1522
2008*  11877.4    176.2    194.9    280.0     1.45       :      1.1764
2009*  12225.9    182.0    201.0    292.9     1.45       :      1.2025

=====================================================================
HOSPITAL INSURANCE TRUST FUND - INCOME, OUTGO, AND BALANCE: 1966-2009
               (percent of GDP)
------------------------------------------------------------
                                                     Maximum
                  Total    Total     Fund   HI Tax  Earnings
Year       GDP    Outgo   Income  Balance     Rate     Taxed
----  --------  -------  -------  -------  -------  --------
1966     755.8     0.01     0.12     0.11     0.35      6600
1967     810.2     0.32     0.38     0.17     0.50      6600
1968     868.5     0.44     0.45     0.16     0.60      7800
1969     948.3     0.50     0.56     0.21     0.60      7800
1970    1012.9     0.49     0.55     0.26     0.60      7800
1971    1080.3     0.52     0.56     0.29     0.60      7800
1972    1176.9     0.53     0.51     0.24     0.60      9000
1973    1311.0     0.52     0.64     0.33     1.00     10800
1974    1438.9     0.56     0.81     0.55     0.90     13200
1975    1560.8     0.68     0.81     0.63     0.90     14100
1976    1738.8     0.72     0.78     0.62     0.90     15300
1977    1974.4     0.77     0.78     0.56     0.90     16500
1978    2218.3     0.81     0.84     0.53     1.00     17700
1979    2502.4     0.81     0.88     0.53     1.05     22900
1980    2725.4     0.89     0.93     0.53     1.05     25900
1981    3058.6     0.96     1.07     0.59     1.30     29700
1982    3225.5     1.08     1.17     0.65     1.30     32400
1983    3442.7     1.12     1.28     0.40     1.30     35700
1984    3846.7     1.10     1.19     0.45     1.30     37800
1985    4148.9     1.17     1.23     0.51     1.35     39600
1986    4406.7     1.13     1.28     0.88     1.45     42000
1987    4654.4     1.09     1.35     1.09     1.45     43800
1988    5011.9     1.05     1.36     1.31     1.45     45000
1989    5401.7     1.08     1.39     1.53     1.45     48000
1990    5737.0     1.16     1.39     1.67     1.45     51300
1991    5934.2     1.19     1.43     1.85     1.45    125000
1992    6240.6     1.31     1.49     1.93     1.45    130200
1993    6578.4     1.39     1.45     1.92     1.45    135000
1994    6964.2     1.48     1.52     1.86     1.45    no max
1995    7325.1     1.57     1.57     1.77     1.45       :
1996    7697.4     1.66     1.60     1.63     1.45       :
1997    8186.6     1.68     1.57     1.42     1.45       :
1998    8626.3     1.59     1.60     1.36     1.45       :
1999    9127.0     1.44     1.68     1.52     1.45       :
2000    9708.4     1.34     1.64     1.73     1.45       :
2001   10040.7     1.42     1.72     1.97     1.45       :
2002   10373.4     1.43     1.73     2.21     1.45       :
2003   10828.3     1.42     1.62     2.32     1.45       :

2004*  11466.0     1.48     1.56     2.27     1.45       :
2005*  12042.4     1.53     1.62     2.25     1.45       :
2006*  12641.1     1.49     1.62     2.28     1.45       :
2007*  13279.1     1.49     1.63     2.31     1.45       :
2008*  13972.6     1.48     1.64     2.36     1.45       :
2009*  14701.6     1.49     1.64     2.40     1.45       :
----------------------------------------------------------------------
* estimated
Source: Budget of the United States Government, FY 2005, Historical Tables,
        table 10.1 and 13.1; HI Tax Rate and Maximum Earnings from
        http://www.cms.hhs.gov/researchers/pubs/datacompendium/2002/02pg100.pdf
Note: HI Tax Rate is paid by employer and employee, each;
      starting in 1994, all earnings are subject to the HI tax

SUPPLEMENTARY MEDICAL INSURANCE - INCOME, OUTGO, AND BALANCE: 1966-2009
                 (in billions of dollars)
-----------------------------------------------------------

                  Total    Total  Premium     % of     Fund
Year       GDP    Outgo   Income   Income    Outgo  Balance
----  --------  -------  -------  -------  -------  -------
1965     687.5
1966     755.8      0.0      0.0      0.0               0.0
1967     810.2      0.8      1.3      0.6     81.1      0.5
1968     868.5      1.5      1.4      0.7     45.6      0.3
1969     948.3      1.8      1.9      0.9     49.1      0.4
1970    1012.9      2.2      1.9      0.9     42.6      0.1
1971    1080.3      2.3      2.5      1.3     54.9      0.3
1972    1176.9      2.5      2.7      1.3     52.7      0.5
1973    1311.0      2.6      2.9      1.4     54.1      0.7
1974    1438.9      3.3      3.8      1.7     51.9      1.3
1975    1560.8      4.2      4.3      1.9     45.6      1.4
1976    1738.8      5.2      5.0      1.9     37.3      1.2
1977    1974.4      6.3      7.4      2.2     34.6      2.3
1978    2218.3      7.4      9.0      2.4     33.1      4.0
1979    2502.4      8.8      9.8      2.6     29.9      5.0
1980    2725.4     10.7     10.3      2.9     27.2      4.5
1981    3058.6     13.2     12.5      3.3     25.1      3.8
1982    3225.5     15.6     17.6      3.8     24.6      5.8
1983    3442.7     18.3     19.1      4.2     23.1      6.6
1984    3846.7     20.4     22.5      4.9     24.1      8.8
1985    4148.9     22.7     24.6      5.5     24.3     10.6
1986    4406.7     26.2     25.0      5.7     21.7      9.4
1987    4654.4     30.8     27.8      6.5     21.0      6.4
1988    5011.9     34.9     35.0      8.8     25.1      6.4
1989    5401.7     38.3     43.8     11.5     30.1     11.9
1990    5737.0     43.0     45.6     11.5     26.7     14.5
1991    5934.2     47.0     48.2     11.8     25.1     15.7
1992    6240.6     50.3     53.1     12.7     25.4     18.5
1993    6578.4     54.3     60.8     14.7     27.1     23.3
1994    6964.2     59.7     57.4     16.9     28.3     20.9
1995    7325.1     65.2     58.2     19.2     29.5     13.9
1996    7697.4     68.9     82.0     18.9     27.5     27.0
1997    8186.6     72.6     80.8     19.1     26.4     35.2
1998    8626.3     76.3     82.0     19.4     25.5     40.9
1999    9127.0     80.5     85.3     20.2     25.0     45.6
2000    9708.4     89.0     89.2     20.5     23.1     45.9
2001   10040.7     99.5     95.4     22.3     22.4     41.8
2002   10373.4    108.8    105.7     24.4     22.4     38.7
2003   10828.3    124.1    110.2     26.8     21.6     24.8

2004*  11466.0    133.3    129.3     30.5     22.9     20.8
2005*  12042.4    146.5    153.7     34.9     23.8     28.0
2006*  12641.1    208.5    216.1     47.3     22.7     42.0
2007*  13279.1    243.0    237.0     53.0     21.8     45.0
2008*  13972.6    259.2    252.7     56.7     21.9     48.1
2009*  14701.6    276.6    269.4     60.6     21.9     51.2

=======================================================================
SUPPLEMENTARY MEDICAL INSURANCE - INCOME, OUTGO, AND BALANCE: 1966-2009
               (in billions of 2000 dollars)
---------------------------------------------------------------------
                                                            Composite
                  Total    Total  Premium     % of     Fund    Outlay
Year       GDP    Outgo   Income   Income    Outgo  Balance  Deflator
----  --------  -------  -------  -------  -------  -------  --------
1965    3565.9      0.0      0.0      0.0               0.0    0.1928
1966    3828.8      0.0      0.0      0.0               0.0    0.1974
1967    3999.0      3.9      6.3      3.2     81.1      2.4    0.2026
1968    4129.8      7.3      6.4      3.3     45.6      1.5    0.2103
1969    4252.5      8.3      8.6      4.0     49.1      1.7    0.2230
1970    4286.5      9.3      7.9      4.0     42.6      0.2    0.2363
1971    4288.6      9.1     10.0      5.0     54.9      1.2    0.2519
1972    4375.1      9.5     10.2      5.0     52.7      1.8    0.2690
1973    4627.6      9.3     10.2      5.0     54.1      2.6    0.2833
1974    4687.0     10.7     12.4      5.6     51.9      4.1    0.3070
1975    4612.3     12.3     12.8      5.6     45.6      4.2    0.3384
1976    4776.9     14.3     13.7      5.3     37.3      3.3    0.3640
1977    5018.8     16.1     18.8      5.6     34.6      5.8    0.3934
1978    5288.0     17.5     21.6      5.8     33.1      9.5    0.4195
1979    5497.4     19.3     21.6      5.8     29.9     11.0    0.4552
1980    5419.4     21.4     20.4      5.8     27.2      9.0    0.5029
1981    5499.1     23.8     22.4      6.0     25.1      6.7    0.5562
1982    5413.7     26.1     29.6      6.4     24.6      9.8    0.5958
1983    5512.7     29.3     30.7      6.8     23.1     10.6    0.6245
1984    5868.3     31.1     34.4      7.5     24.1     13.4    0.6555
1985    6118.4     33.5     36.2      8.1     24.3     15.7    0.6781
1986    6343.3     37.7     36.0      8.2     21.7     13.6    0.6947
1987    6516.0     43.2     38.9      9.1     21.0      8.9    0.7143
1988    6810.6     47.5     47.6     11.9     25.1      8.8    0.7359
1989    7078.6     50.2     57.4     15.1     30.1     15.6    0.7631
1990    7278.6     54.6     57.9     14.6     26.7     18.4    0.7882
1991    7214.0     57.2     58.6     14.4     25.1     19.1    0.8226
1992    7335.0     59.1     62.5     15.0     25.4     21.8    0.8508
1993    7539.7     62.2     69.7     16.8     27.1     26.7    0.8725
1994    7823.2     67.1     64.4     19.0     28.3     23.5    0.8902
1995    8031.9     71.5     63.8     21.1     29.5     15.2    0.9120
1996    8251.9     73.9     87.9     20.3     27.5     28.9    0.9328
1997    8610.2     76.3     85.0     20.1     26.4     37.0    0.9508
1998    8982.9     79.4     85.3     20.2     25.5     42.6    0.9603
1999    9362.9     82.6     87.5     20.7     25.0     46.8    0.9748
2000    9708.4     89.0     89.2     20.5     23.1     45.9    1.0000
2001    9811.1     97.2     93.2     21.8     22.4     40.8    1.0234
2002    9966.8    104.6    101.5     23.5     22.4     37.1    1.0408
2003   10192.3    116.8    103.7     25.3     21.6     23.3    1.0624

2004*  10597.0    123.2    119.5     28.1     22.9     19.2    1.0820
2005*  10938.7    133.1    139.6     31.7     23.8     25.5    1.1009
2006*  11190.8    184.5    191.3     41.8     22.7     37.2    1.1296
2007*  11525.0    210.9    205.7     46.0     21.8     39.0    1.1522
2008*  11877.4    220.3    214.8     48.2     21.9     40.9    1.1764
2009*  12225.9    230.0    224.1     50.4     21.9     42.6    1.2025

=======================================================================
SUPPLEMENTARY MEDICAL INSURANCE - INCOME, OUTGO, AND BALANCE: 1966-2009
                     (percent of GDP)
-----------------------------------------------------------

                  Total    Total  Premium     % of     Fund
Year       GDP    Outgo   Income   Income    Outgo  Balance
----  --------  -------  -------  -------  -------  -------
1965     687.5
1966     755.8      0.0      0.0      0.0               0.0
1967     810.2      0.1      0.2      0.1     81.1      0.1
1968     868.5      0.2      0.2      0.1     45.6      0.0
1969     948.3      0.2      0.2      0.1     49.1      0.0
1970    1012.9      0.2      0.2      0.1     42.6      0.0
1971    1080.3      0.2      0.2      0.1     54.9      0.0
1972    1176.9      0.2      0.2      0.1     52.7      0.0
1973    1311.0      0.2      0.2      0.1     54.1      0.1
1974    1438.9      0.2      0.3      0.1     51.9      0.1
1975    1560.8      0.3      0.3      0.1     45.6      0.1
1976    1738.8      0.3      0.3      0.1     37.3      0.1
1977    1974.4      0.3      0.4      0.1     34.6      0.1
1978    2218.3      0.3      0.4      0.1     33.1      0.2
1979    2502.4      0.4      0.4      0.1     29.9      0.2
1980    2725.4      0.4      0.4      0.1     27.2      0.2
1981    3058.6      0.4      0.4      0.1     25.1      0.1
1982    3225.5      0.5      0.5      0.1     24.6      0.2
1983    3442.7      0.5      0.6      0.1     23.1      0.2
1984    3846.7      0.5      0.6      0.1     24.1      0.2
1985    4148.9      0.5      0.6      0.1     24.3      0.3
1986    4406.7      0.6      0.6      0.1     21.7      0.2
1987    4654.4      0.7      0.6      0.1     21.0      0.1
1988    5011.9      0.7      0.7      0.2     25.1      0.1
1989    5401.7      0.7      0.8      0.2     30.1      0.2
1990    5737.0      0.7      0.8      0.2     26.7      0.3
1991    5934.2      0.8      0.8      0.2     25.1      0.3
1992    6240.6      0.8      0.9      0.2     25.4      0.3
1993    6578.4      0.8      0.9      0.2     27.1      0.4
1994    6964.2      0.9      0.8      0.2     28.3      0.3
1995    7325.1      0.9      0.8      0.3     29.5      0.2
1996    7697.4      0.9      1.1      0.2     27.5      0.4
1997    8186.6      0.9      1.0      0.2     26.4      0.4
1998    8626.3      0.9      1.0      0.2     25.5      0.5
1999    9127.0      0.9      0.9      0.2     25.0      0.5
2000    9708.4      0.9      0.9      0.2     23.1      0.5
2001   10040.7      1.0      0.9      0.2     22.4      0.4
2002   10373.4      1.0      1.0      0.2     22.4      0.4
2003   10828.3      1.1      1.0      0.2     21.6      0.2

2004*  11466.0      1.2      1.1      0.3     22.9      0.2
2005*  12042.4      1.2      1.3      0.3     23.8      0.2
2006*  12641.1      1.6      1.7      0.4     22.7      0.3
2007*  13279.1      1.8      1.8      0.4     21.8      0.3
2008*  13972.6      1.9      1.8      0.4     21.9      0.3
2009*  14701.6      1.9      1.8      0.4     21.9      0.3
-----------------------------------------------------------------------
* estimated
Source: Budget of the United States Government, FY 2005,
        Historical Tables, table 10.1 and 13.1
Note: The large increase in outgo and income in 2006 and thereafter
      is mostly due to the Medicare Prescription Drug, Improvement,
      and Modernization Act of 2003.

Among the points that the above graphs and tables illustrate are the
following:

1) Spending for Hospital Insurance (Medicare Part A) and Supplementary
   Medical Insurance (Medicare Part B) has been generally growing at
   a faster rate than the GDP.

2) The first graph shows a close correlation between the growth in HI
   income as a percent of GDP and the HI Tax Rate.  This may not be too
   surprising.  If you assume that the wage base is growing at about the
   same rate as the GDP, then a constant tax rate should bring in the
   same percentage of GDP.  This implies that the main reason for the
   rising HI Tax Rate is to support HI's above GDP growth.

   This correlation appears to break down a bit starting around 1991.
   But, as the first table shows, this is the year that the Maximum
   Earnings Taxed more than doubled.  The maximum was completely
   eliminated in 1994.

3) The second graph shows the relatively small portion of Supplementary
   Medical Insurance that is paid by premiums.  The fourth table shows
   that this portion dropped from a recent high of 29.5% of outgo in
   1995 to 21.6% of outgo in 2003.

4) There is a large increase in outlays and income projected for the SMI
   program in 2006 and after.  This is mostly due to the recently passed
   Medicare Prescription Drug, Improvement, and Modernization Act of 2003.
   Following is the cost of that program from 2003 through 2009:

   Projected Net Cost of Medicare Reform Act of 2003 (billions of dollars)

     2003    2004    2005    2006    2007    2008    2009
   ------  ------  ------  ------  ------  ------  ------
        0   3.402   3.993  44.878  64.909  70.939  77.490

   Source: Budget of the United States Government, FY 2005, Table 24-12

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