CBO projects multibillion decrease in Medicare and Medicaid costs over next decade

The Congressional Budget Office (CBO) recently announced that it has decreased its 10-year projected cost of Medicare and Medicaid by $89 billion due to reduced medical services and labor costs.
 

From 2015 to 2024, Medicare and Medicaid spending is expected to drop about 1%, $49 billion and $40 billion respectively, according to the CBO’s forecast. However in the short term, due mostly to the Affordable Care Act, federal spending for healthcare programs will increase $67 billion this year.