Final answer:
Medicare is the fastest growing component of many state budgets, the given statement is 1) true due to the increasing number of elderly Americans and rising medical prices.
Step-by-step explanation:
Medicare, established in 1965, covers a large number of Americans and consists of four distinct parts which are funded differently. Spending on Medicare is projected to dramatically increase in the coming decades due to the growing number of elderly Americans and rising medical prices.
According to long-term projections from the Congressional Budget Office, Medicare spending will rise from 8.3% of GDP in 2009 to about 13% by 2035 and about 20% in 2080. Without a corresponding increase in tax collections, changes such as increased taxes, cut in other spending, higher retirement age, or large budget deficits will be required to sustain the program. So therefore the given statement is 1) true