The cost of government benefits for seniors soared to a record $27,289 per senior in 2007, according to a USA TODAY analysis.
That's a 24% increase above the inflation rate since 2000. Medical costs are the biggest reason. Last year, for the first time, health care and nursing homes cost the government more than Social Security payments for seniors age 65 and older. The average Social Security benefit per senior in 2007 was $13,184.
"We have a health care crisis. We don't have an en lement crisis," says David Certner, legislative policy director of the AARP, which represents seniors.
He says seniors shouldn't be blamed for the growing cost of government retirement programs.
The federal government spent $952 billion in 2007 on elderly benefits, up from $601 billion in 2000. It's the biggest function of the federal government. States chipped in $27 billion more in 2007, mostly for nursing homes.
All three major senior programs � Social Security, Medicare and Medicaid � experienced dramatically escalating costs that outstripped inflation and the growth in the senior population.
Benefits per senior are soaring at a time when the senior population is not. The portion of the U.S. population ages 65 and older has been constant at 12% since 2000.
The senior boom, however, starts big time in 2011, when the first baby boomers � 79 million people born between 1946 and 1964 � turn 65 and qualify for Medicare health insurance. The oldest baby boomers turn 62 this year and qualify for Social Security at reduced benefits.