Question: Out-of-pocket spending projections for a typical Medicare beneficiary as a share of his or her income are given in the table (the year, then the associated percentage directly below). Present the data along with a model. Justify the reasonableness of your model and any pros and cons associated with it. What is the predicted percent of income in 2013?

Year 1998 2000 2005 2010 2015 2020 2025

% of Income 18.6 19.3 21.7 24.7 27.5 28.3 28.6