Medicare and Medicaid account for 23 percent of federal spending this year.

From The New York Times:

As Congress opens a politically charged exploration of ways to pare the deficit, President Obama is expected to seek hundreds of billions of dollars in savings in Medicare and Medicaid, delighting Republicans and dismaying many Democrats who fear that his proposals will become a starting point for bigger cuts in the popular health programs.

The president made clear his intentions in his speech to a joint session of Congress last week when, setting forth a plan to create jobs and revive the economy, he said he disagreed with members of his party “who don’t think we should make any changes at all to Medicare and Medicaid.”

Few Democrats fit that description. But many say that if, as expected, Mr. Obama next week proposes $300 billion to $500 billion of savings over 10 years in entitlement programs, he will provide political cover for a new bipartisan Congressional committee to cut just as much or more.

And, they say, such proposals from the White House will hamstring Democrats who had been hoping to employ Medicare as a potent issue against Republicans in 2012 campaigns after many Congressional Republicans backed a budget that would have substantially altered Medicare by providing future beneficiaries with a subsidy to enroll in private health care plans.

Medicare and Medicaid account for 23 percent of federal spending this year, and their costs are growing faster than the rest of the budget because of increasing enrollment and medical inflation. Under current law, the Congressional Budget Office says, the two programs will account for 28 percent of federal spending in 2021.