Dr. Flossi: From TV Studio to Operating Room

Medicare and Medicaid are two of the largest federal programs in the United States, both in terms of enrollment and expenditure. Here's an overview of their budgets:

Spending Growth: In 2022, Medicare spending increased by 5.9% to $944.3 billion, accounting for 21% of the nation's total health expenditures. 

Projected Spending: By 2023, Medicare spending will surpass $1 trillion, reflecting the program's expanding role in healthcare financing. 

Medicaid spending grew by 9.6% in 2022, reaching $805.7 billion, representing 18% of total national health expenditures. 

The increase in spending was partly due to a record-high Medicaid enrollment of 91.2 million people in 2023, driven by policy changes and economic factors. 

Together, Medicare and Medicaid constitute a significant portion of federal mandatory spending. In fiscal year 2024, the Department of Health and Human Services (HHS) proposed a budget with $1.7 trillion in mandatory funding, primarily allocated to these programs. 

Economic Projections: Over the next decade, healthcare spending is projected to grow at an average annual rate of 5.6%, outpacing the projected GDP growth of 4.3%. This trend suggests that healthcare expenditures, including those for Medicare and Medicaid, will consume more of the economy.

Medicare and Medicaid Programs were established by President Lyndon B. Johnson when he signed the Social Security Amendments of 1965 into law.

Leonard D. Schaeffer was the first director of the Health Care Financing Administration (HCFA), which later became CMS. He was appointed as HCFA’s first administrator in 1977.

Born on July 28, 1945, in Chicago, Illinois, Schaeffer grew up in Evanston, Illinois. He graduated from Princeton University in 1969. 

He served as the Deputy Director for Management at the Illinois Department of Mental Health and Developmental Disabilities, the Director of the Bureau of the Budget, and the Chairman of the Illinois Capital Development Board. 

In 1978, he was appointed Assistant Secretary for Management and Budget at the U.S. Department of Health, Education, and Welfare. At age 33, he became the first Administrator of the Health Care Financing Administration (now the Centers for Medicare & Medicaid Services), overseeing Medicare and Medicaid programs. 

Transitioning to the private sector, Schaeffer held significant roles:

In 1986, Schaeffer became President and CEO of Blue Cross of California, which was near bankruptcy. He created WellPoint Health Networks in 1993. WellPoint became a leading health benefits company. 

Student Loan Marketing Association: As Executive Vice President and Chief Operating Officer, he managed the national secondary market for student loans. 

He is currently the Judge Robert Maclay Widney Chair and Professor at the University of Southern California (USC) and is a Senior Advisor to Whistler Capital Partners, a private equity firm.

Schaeffer serves on various boards, including the Brookings Institution and RAND Corporation.