Medical technology and costs of largely due to the use of medical technology those costs are now increasing at an annual rate of 7 a year the medicare program as a consequence is projected to go bankrupt in nine years and overall health care cost to go from its present 21 trillion annually to 4 trillion in 10 years. Medicare costs related to medical technology but draws from the study of drgs and the case studies this assessment explores the dual relationship between medical technology and the medicare program medicare policies affect the adoption and use of medical technol ogies and the patterns and levels of use of medical technologies significantly affect medi care costsit reviews specific . Medical technology this chapter examines the patterns of medical technology use experienced by the medicare population compared to the gen eral population its primary purpose however is to explore the nature and size of medical tech noloyrs contribution to health care and medicare cost s how medical technology contributes to health. Smi supplementary medical insurance part b program glossary of terms allowable costs hospital costs that are reimbursable under the medicare program ancillary technologymedical technology used directly to support clinical services including diag nostic radiology radiation therapy clinical labora tory and other special services. An assessment by the office of technology assessment ota that explores the dual relationship between medical technology and the medicare program medicare policies affect the adoption and use of medical technologies and the patterns and levels of use of medical technologies significantly affect medicare costs p iii