Medicaid spending will outpace US growth in the economy over the next 10 years, according to a new annual report released Friday by CMS.

The report projects that Medicaid benefits spending will increase 7.3% from 2007 to 2008, reaching $339 billion and will grow at an annual average rate of 7.9% over the next 10 years, reaching $674 billion by 2017. That compares to a projected rate of growth of 4.8 percent in the general economy.

To read the CMS press release, click here.

For the full CMS report, click here.