Costs for the Medicaid program - which provides health care for the needy - will in the future effectively double every seven years as the program is now constituted.

Enacted in 1966 as part of President Lyndon Johnson's "Great Society" push, Medicaid has experienced double-digit growth in nearly all of its 30 years.

• From $770 million in 1966, federal Medicaid expenditures increased to $2.7 billion (1970), $6.8 billion (1975), $14 billion (1980), $22.7 billion (1985), $41.1 billion (1990), and an estimated $89.2 billion in 1995.

• In addition to federal costs, states and local governments will chip in an additional $67.3 billion this year alone.

• Thus total Medicaid costs for all levels of government have mounted to $156.5 billion annually.

• The program serves 33 million poor people - one-eighth of the U.S. population.

Twenty-five years ago, Medicaid's share of federal spending was 1.4%. The Congressional Budget Office estimates that proportion will grow to nearly 10% of the budget - or $232 billion - by the year 2002, unless the program is reined in.

Source: Editorial, "Runaway Medicaid," Washington Times, September 28, 1995.

Thanks to astonishing progress in medical science, there are more and more elderly people in America. Assisting them when they are no longer able to care for themselves is a responsibility increasingly shoved onto government -- specifically the Medicaid program, which is providing health care benefits to even middle class Americans. What happens when costs become too high for taxpayers to carry?

• The fastest growing age group in America is those over 85.

• Well over half of Medicaid expenditures go to the elderly, blind and disabled.

• The single largest chunk goes for long-term care for the elderly -- with home care assistance taking second place.

• Less than one-sixth of Medicaid money goes for health care for able-bodied, non-elderly poor adults.

Many nursing home residents finance their care through a combination of their Social Security and Medicaid payments -- which they qualify for by divesting themselves of their assets.

Political observers say that containing Medicaid costs may be the most explosive policy issue lawmakers will face in coming years.

Source: Norman Ornstein (American Enterprise Institute), "As Parents Grow Old, Who Will Pay the Bills?" USA Today, January 16, 1997.

The Congressional Budget Office is predicting that Medicaid costs will rise at a slower rate than it estimated just six months ago. The financial outlook for Medicare costs improved just slightly.

• With no change in current law, federal Medicaid spending is projected to rise an average of 7.8 percent a year to $144 billion in 2002 from 92 billion in 1996 -- compared to a predicted 9.7 percent six months ago.

• The CBO's assessment assumes that greater use of managed care will help control Medicaid costs.

The estimated spending drop of $86 billion is more than all the Medicaid savings proposed by Republican Congressman over two years of wrangling with the Clinton administration about cutting Medicaid spending.

As for Medicare, its Hospital Insurance Trust Fund will run out of money in 2001 if Congress takes no action.

• Medicare spending will grow 8.6 percent a year -- to $314 billion in 2002 from $191 billion in 1996 -- a modest decline from the 8.9 percent predicted last August.

• The premiums Medicare beneficiaries pay for physician and outpatient services under current law, which are now $43.80 per month, will rise to $45.60 next year and to $47.10 in 1999.

Source: Robert Pear, "Medicaid Forecast Sees Costs Rising at a Slower Rate," New York Times, January 17, 1997.