Health Spending to Grow 5.5% Per Year, Will Be 20% of GDP in 10 Years Health Spending to Grow 5.5% Per Year, Will Be 20% of GDP in 10 Years – NTK Network

Health Spending to Grow 5.5% Per Year, Will Be 20% of GDP in 10 Years

A study from the Department of Health and Human Services (HHS) confirms health spending will continue to skyrocket in the United States.

By NTK Staff | 02.15.2018 @11:15am
Health Spending to Grow 5.5% Per Year, Will Be 20% of GDP in 10 Years

A new study “from the actuaries at the Department of Health and Human Services (HHS)” found health spending will increase 5.5 percent per year from 2017 to 2026, and health spending will represent nearly one-fifth of the nation’s GDP in less than 10 years.

The abstract of the HHS study reads:

Under current law, national health spending is projected to grow 5.5 percent annually on average in 2017–26 and to represent 19.7 percent of the economy in 2026. Projected national health spending and enrollment growth over the next decade is largely driven by fundamental economic and demographic factors: changes in projected income growth, increases in prices for medical goods and services, and enrollment shifts from private health insurance to Medicare that are related to the aging of the population. The recent enactment of tax legislation that eliminated the individual mandate is expected to result in only a small reduction to insurance coverage trends.

A few key takeaways:

  • Health spending is running out of control: Modern Healthcare found that the report predicted Medicare spending and private health insurance spending will continue to grow at five-percent rates
  • Medicaid spending is growing, but more under control: Modern Healthcare also found Medicaid “expenditures are projected to have grown more slowly in 2017, at 2.9%, after increasing 3.9% in 2016”
  • Individual mandate repeal was not the catastrophe Democrats predicted: The Hill reported, “By 2026, 3.3 million people could become uninsured, according to the report.” This is in contrast to some who, in the wake of tax cuts passing, predicted millions more would be uninsured.
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