Health care Spending to Increase in Next Decade
As per estimations of the federal government given last week, health care spending in the next decade will increase 6% a year, faster than the overall US economy. It is considered that if the prediction turns out to be true than it could prove as a big challenge for the next president, also for Americans.
On an average, annual rise in health care spending was 4% from 2008 to 2013. But by 2019, the health care spending will increase 6% a year. The report by the Office of the Actuary in the Health and Human Services Department has termed the rise to be 'relatively modest'.
However, economist Douglas Holtz-Eakin, president of the American Action Forum, a center-right think tank, said that news is not a good one. Eakin affirmed, "The main point is that the bill will continue to grow faster than the economy, which is what pays the bill. The next president faces the task of reining in the growth of federal entitlement spending".
The report has unveiled that heath care as a share of the nation's total economy is expected to grow from 17.4% in 2013 to 19.6% in 2024. On the other hand, a gradual decline was witnessed in the growth of the nation's health care tab at the time economic recession (2007-2009).
Afterwards, for many years the health care rise was tracked closely with the economy. Medicare cuts ensure that health care spending remains under check, but many working people noticed their medical bills increasing because employers were putting costs on their employees and families.
But due to coverage expansion, things changed and around 8.4 million people received coverage in 2014.