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Abstract
The Medicare and Medicaid programs cover a larger share of the population in nonmetropolitan than metropolitan areas because nonmetropolitan areas have relatively more elderly, disabled, and poor persons entitled to benefits. Nonmetropolitan health care providers are consequently more dependent on Medicare and Medicaid revenue than their metropolitan counterparts. The rapid growth of public expenditures on the Medicare and Medicaid programs has prompted legislative proposals to slow the growth of spending. The proposals are likely to have a greater impact on nonmetropolitan than metropolitan areas due to the geographic variations in program coverage and expenditures.