jay gw
24th February 2005, 11:24 AM
WASHINGTON (AP) -- Within a decade, the government will be footing the bill for nearly half the nation's medical costs, its share propelled higher by the new Medicare drug program, administration economists estimate.
At the same time, total health spending -- both private and government -- will take an ever-larger portion of America's economic output, said the report from the Centers for Medicare and Medicaid Services.
The rise in federal payments raises "some really, really big issues" about a government budget in which other programs already are being squeezed out, said Urban Institute tax analyst Eugene Steuerle.
The projections were the result of an effort to measure the impact of last year's Medicare law on overall health spending between 2004 and 2014.
Officials said that overall, the growth in health costs was expected to remain stable at around 7 percent per year over that period.
But the portion borne by the government will rise due to the Medicare drug benefit that starts next year.
This year, 76 percent of all drug spending -- a projected $223.5 billion -- is expected to come from private health insurance and out-of-pocket co-payments.
By 2014, overall medical payments are projected at about $3.6 trillion, with the government footing 1.8 trillion, or 49.4 percent, and private funding covering just over 50 percent, it said.
The federal share has been rising for decades. In 1965, the government was covering roughly 25 percent of health costs and private parties 75 percent, according to the report. Last year the government paid 45.6 percent of an estimated $1.8 trillion in medical bills.
Eventually, the two sides will reverse roles, with the government paying more than half, said Richard Foster, chief actuary for the Centers for Medicare and Medicaid Services.
The report also said that over the decade health care spending is expected to continue growing faster than the nation's gross domestic product. Therefore, it will account for 18.7 percent of GDP in 2014 compared with 15.3 percent last year.
http://www.cnn.com/2005/HEALTH/02/24/health.costs.ap/index.html
Wow. The part that sounds ominous is that health care spending is projected to become about 20 percent of GDP. 20 percent of the economy is going to be health care related. I don't think that's a good thing.
The fastest growing jobs will be in health care, but when the baby boomer generation starts dying off, all the people that studied medicine won't have jobs anymore.
At the same time, total health spending -- both private and government -- will take an ever-larger portion of America's economic output, said the report from the Centers for Medicare and Medicaid Services.
The rise in federal payments raises "some really, really big issues" about a government budget in which other programs already are being squeezed out, said Urban Institute tax analyst Eugene Steuerle.
The projections were the result of an effort to measure the impact of last year's Medicare law on overall health spending between 2004 and 2014.
Officials said that overall, the growth in health costs was expected to remain stable at around 7 percent per year over that period.
But the portion borne by the government will rise due to the Medicare drug benefit that starts next year.
This year, 76 percent of all drug spending -- a projected $223.5 billion -- is expected to come from private health insurance and out-of-pocket co-payments.
By 2014, overall medical payments are projected at about $3.6 trillion, with the government footing 1.8 trillion, or 49.4 percent, and private funding covering just over 50 percent, it said.
The federal share has been rising for decades. In 1965, the government was covering roughly 25 percent of health costs and private parties 75 percent, according to the report. Last year the government paid 45.6 percent of an estimated $1.8 trillion in medical bills.
Eventually, the two sides will reverse roles, with the government paying more than half, said Richard Foster, chief actuary for the Centers for Medicare and Medicaid Services.
The report also said that over the decade health care spending is expected to continue growing faster than the nation's gross domestic product. Therefore, it will account for 18.7 percent of GDP in 2014 compared with 15.3 percent last year.
http://www.cnn.com/2005/HEALTH/02/24/health.costs.ap/index.html
Wow. The part that sounds ominous is that health care spending is projected to become about 20 percent of GDP. 20 percent of the economy is going to be health care related. I don't think that's a good thing.
The fastest growing jobs will be in health care, but when the baby boomer generation starts dying off, all the people that studied medicine won't have jobs anymore.