The Medicare time bomb

Approximately 3.9 million baby boomers will turn 65 in the year 2020. This will eventually cost Medicare around $210 billion, about twice the amount needed to care for the 2.1 million who turned 65 in 1990. These figures are calculated in 1990 dollars and ignore inflation. Managers need to emphasize to Congress that hospital rates grew only 4.1% in 1994 and 1995 and Medicare finances and demographics are important considerations.