The costs of uncompensated care are estimated to be about $41 billion in 2004. Projected government spending available to pay for the care of the uninsured in 2004 is $ billion—about 85% of the total uncompensated care bill. More than half of all funds for uncompensated care come from the federal government, with the majority (70%) of federal dollars flowing through Medicare and Medicaid. Most government dollars for uncompensated care goes for hospital care—which is paid indirectly to hospitals based partly on the share of uncompensated care they provide. Uncompensated care costs in direct service programs,.