2023 Medicare Statistics
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- As of June 2023, 66,064,094 people, or 19.4% of the U.S. population, are covered by Medicare. Of those, 33,948,778 are enrolled in Original Medicare.
- More than half (51%) of eligible Medicare beneficiaries are enrolled in Medicare Advantage in 2023.
- Medicare households spend 2X more on health-related expenses on average than non-Medicare households (15% of total household spending compared to 7%).
- Medicare spending grew 8.4% to $900.8 billion in 2021(the most recent data available), or 21% of total national health expenditure.
- An aging U.S. population, rising enrollment, and higher costs per person have contributed to the growth in total Medicare spending.
- The percentage of those aged 65 and older, and thus eligible for Medicare, has increased by 38% (15.2 million people) since 2010.
Medicare Enrollment Numbers
As of June 2023, 66,064,094 people, or 19.4% of the U.S. population, are covered by Medicare. Of those, 33,948,778 are enrolled in Original Medicare. This is up from 18.7% of the population in 2022.
Generally speaking, Medicare enrollment numbers are increasing in correlation with the aging population.
- According to the latest Census data, nearly 17% of the U.S. population (55.7 million people), were 65 and older in 2020, and thus eligible for Medicare.
- The percentage of those aged 65 and older has increased by 38% (15.2 million people) since 2010 The under-65 population has grown only 2% over the same time period.
|Medicare Parts and/or B||65 million |
(57.3 million aged; 7.7 million disabled)
|Original Medicare||35.1 million|
|Medicare Advantage||29.1 million|
|Medicare Supplement||11.5 million|
|Medicare Part D||50.3 million|
How Many Medicare Enrollees Are Under Age 65?
- 13% of Medicare enrollees are under age 65 (as of 2020)
- 58.4 million Medicare beneficiaries are enrolled due to age (65 and older)
- 12% of Medicare enrollees are age 85+ (as of 2020)
How Many Medicare Enrolled Are Disabled?
- 7.6 million Medicare beneficiaries are enrolled due to disability
What are the Most Common Health Conditions of Medicare Members?
- 24% have mental health conditions
- 23% have functional impairment
- 15% have 5+ chronic conditions
Medicare Industry Trends
Medicare spending accounted for 13% of the U.S. federal budget in 2023, up from 12% in 2020.
- Total Medicare expenditures have increased 400% since 1970. Following this trend, the share of federal spending on Medicare could rise to one-fifth of the total budget by 2051.
- In 2021, Medicare spending comprised 13% of the federal budget and 21% of national healthcare spending.
- In 2022, Medicare benefit payments totaled $744 billion compared to just under $200 billion in 2000.
- Since 2000, Medicare spending (Medicare benefits payments) has seen an average annual growth rate of 6.3%.
Medicare costs are forecasted to continue increasing over time as the population continues to age. Spending could top $1.78 trillion by 2031.
- As certain diseases of old age, like Alzheimer’s disease, become increasingly prevalent, healthcare costs for seniors will rise. In 2021, Alzheimer’s disease cost Medicare and Medicaid an estimated $239 billion in care costs. By 2050, this number is projected to reach $798 billion.
The Inflation Reduction Act may help lower out-of-pocket spending for prescription drugs for 2024 and beyond.
- Starting in 2025, federal legislation will activate a $2,000 annual out-of-pocket spending cap for prescription drugs. This may incentivize manufacturers to negotiate lower healthcare costs overall to compete in the market.
The Future of Medicare
The 2022 report of Medicare’s trustees finds that the HI trust fund will be able to pay 100% of the hospital insurance costs that Medicare provides through 2028.
- Beyond that, incoming payroll taxes and other revenue will still be sufficient to pay 90% of Medicare hospital insurance costs.
- The share of costs covered by dedicated revenues will decline slowly to 80% in 2046 and then rise gradually to 93% by 2096.
Medicare households spent an average of $6,557 on health care in 2021, while non-Medicare households spent $4,598. The healthcare burden is twice as large among Medicare households than non-Medicare households.
Thirty-three percent of Medicare households spent 20% or more of their total household spending on health-related expenses, compared to just 7% of non-Medicare households.
However, non-Medicare households spend more in total than non-medicare households, including $6,018 more per year on housing, $3,675 more on food, and $5,878 more on transportation.
|Medicare Costs (2023)||Premium||Deductible||Coinsurance|
|Part A||$0 for those who qualify|
$278 or $506 per month for others
|$1,600||$401 per day for days of hospitalization over 90|
|Part B||$164.90 – $560.50 per month, depending on income||$226||Varies|
|Medicare Advantage (Part C)||$18 per month, on average||Varies||Varies|
|Part D||Varies||$505 maximum||25% of the cost until $7,400 deductible is met|
As of 2023, Medicare Part B premiums account for 9.6% of the average Social Security benefit, up from 6% in 2002.
After adding in the cost of Part A and Part B deductibles, these combined costs account for 25% of the average Social Security benefit.
Medicare spending on Part B benefits increased between 2012 and 2022, and Part B spending is expected to grow to over half of total Medicare spending by 2032. Meanwhile, spending under Part A is projected to decrease.
The Social Security Administration estimates that Medicare fraud costs Americans about $60 billion per year.
The National Health Care Anti-Fraud Association (NHCAA) estimates that the financial losses due to healthcare fraud top tens of billions of dollars each year. Experts estimate fraud losses account for 3% to 10% of total U.S. healthcare expenses.
The most common examples of Medicare fraud are:
- Billing for services that were never rendered or for more expensive services/procedures never provided (upcoding)
- Performing medically unnecessary services
- Presenting non-covered treatments as medically necessary covered treatments
- Falsifying a patient’s diagnosis and medical record to justify tests, surgeries or other procedures that aren’t medically necessary
- Billing for each step of a procedure as if they are separate procedures (unbundling)
- Billing a patient more than the required co-pay amount for services already covered by the plan
Medicare Enrollment by State
|State||Eligible||Enrolled Medicare Advantage||Enrolled Prescription Drug Plan|
The Retirement Living editorial team primarily relies on government data, original research from other reputable publications, and industry experts to inform their writing. Specific sources for this article include:
- Centers for Medicare & Medicaid Services. Medicare Enrollment 2023 Data. Reviewed Oct. 9, 2023.
- Centers for Medicare & Medicaid Services. Fast Facts March 2023 Version. Reviewed Oct. 9, 2023.
- KFF.org. FAQs on Health Spending, the Federal Budget, and Budget Enforcement Tools. Reviewed Oct. 8, 2023.
- U.S. Census Bureau. Exploring Age Groups in the 2020 Census. Reviewed Oct. 10, 2023.
- Medicare.gov. Saving money with the prescription drug law. Reviewed Oct. 10, 2023.
- The Boards Of Trustees, Federal Hospital Insurance And Federal Supplementary Medical Insurance Trust Funds. 2022 Report. Reviewed Oct. 10, 2023.
- KFF.org. The Facts About Medicare Spending June 2023. Reviewed Oct. 9, 2023.
- KFF.org. Medicare Households Spend More on Health Care Than Other Households. Reviewed Oct. 10, 2023.
- Centers for Medicare & Medicaid Services. Monthly Enrollment by State 2023 09. Reviewed Oct. 8, 2023.
- Social Security Administration. Medicare Fraud Prevention Week. Reviewed Oct. 11, 2023.
- National Health Care Anti-Fraud Association. The Challenge of Health Care Fraud. Reviewed Oct. 9, 2023.