OFFICE OF THE ACTUARY The Financial Status of Medicare Presentation for the American Enterprise Institute April 24, 2012 Richard S. Foster, FSA Chief Actuary

Chart 1—Medicare enrollment, benefits, and financing

Chart 9—Medicare Expenditures as a Percentage of GDP under Current Law and Illustrative Alternative Projections

Chart 9—Medicare Expenditures as a Percentage of GDP under Current Law and Illustrative Alternative Projections Illustrative alternative to current law assumes: Physician payment “SGR” formula is overridden in all years NB: This is an illustration, not a recommendation

Chart 9—Medicare Expenditures as a Percentage of GDP under Current Law and Illustrative Alternative Projections Illustrative alternative to current law assumes: Physician payment “SGR” formula is overridden in all years Productivity adjustments to other provider updates are phased down over IPAB requirements are not implemented NB: This is an illustration, not a recommendation