Government programs, such as Medicare and Medicaid, account for a significant share of health care spending. Public health expenditures made up about 46% of the health care dollar in 2007, with the remainder split between private and out-of-pocket spending (42% and 12%, respectively). Medicare spending has grown at a slightly lower rate, on average, than private health insurance spending, at about 9.0 vs. 10.1% annually respectively between 1970 and 2003.
[3] Medicaid expenditures, similarly, have grown at slower rate than private spending, though the current economic recession is likely to increase the number of enrollees in Medicaid and therefore increase Medicaid spending.
[4]