Issues in Rural Health: How Will Measures to Control Medicare Spending Affect Rural Communities?

by Paul Frenzen

The Federal Medicare program provides subsidized health insurance for one in every seven Americans. Medicare covers a higher proportion of rural than urban residents because rural residents are more likely to be elderly or disabled persons entitled to benefits. The rapid growth of Medicare expenditures has prompted legislative proposals to control the increase in spending. This report finds that the proposals may have a greater effect on rural than urban communities due to the higher proportion of Medicare beneficiaries in rural areas.

Keywords: Medicare, health insurance, rural health

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