September 6, 2014

Heath Care Projected to Increase

Nine actuaries from the Centers for Medicare and Medicaid Services published a report at Health Affairs saying the cost of health care will rise faster than the economy will grow. The report said, “The combined effects of the Affordable Care Act’s coverage expansions, faster economic growth, and population aging are expected to fuel health spending growth this year and thereafter (5.6 percent in 2014 and 6.0 percent per year for 2015–23). However, the average rate of increase through 2023 is projected to be slower than the 7.2 percent average growth experienced during 1990–2008. Because health spending is projected to grow 1.1 percentage points faster than the average economic growth during 2013–23, the health share of the gross domestic product is expected to rise from 17.2 percent in 2012 to 19.3 percent in 2023.” There it is folks: The combination of the “Affordable” Care Act and the aging baby boomer generation needing more health care will eat up one-fifth of our economy – and this is a report coming from Obama’s own administration. More…

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