That private firm will base its rates on the costs that it incurs, given that it both receives and delivers the mail in Cleveland-it will not charge a 1,000-mile rate.
Rates are directly based on incurred costs.
48 As shown in figure 4.5, total Medicare spending (Part A HI and Part B SMI combined) is expected to consume 5 percent of GDP by 2035-more than double today's share of 2 percent.