Health care spending will outpace the nation's overall economic growth over the next decade, the government forecast, highlighting a challenge for the next president, not to mention taxpayers, businesses and individual Americans.
Expanded insurance coverage under President Barack Obama's law, an aging population, and rising demand will be squeezing society's ability to pay.
By 2019, health care spending will be increasing at roughly 6 percent a year, compared to an average annual rise of 4 percent from 2008 through 2013.
The forecast, through 2024, does not foresee a return to pre-recession days of torrid health care inflation, as the government and private employers try to revamp the way they pay hospitals and doctors to emphasize quality over quantity.
"The main point is that the bill will continue to grow faster than the economy,
The health care law's Medicare cuts helped keep spending in check, as did across-the-board cuts enacted later.
Many working people saw their own medical bills rise, as employers shifted costs to employees and their families.
At the same time, expensive new drugs that can cure hepatitis C are boosting spending on medications. In 2013, prescription drug spending rose by 2.5 percent. For 2014, the projected increase is 12.6 percent, according to the report. Spending on Medicaid has jumped 6.1 percent in 2013, and projected to grow by 12 percent in 2014.
Solution: It starts with medication cost.
1- Medicaid and Medicare can negotiate with big pharma to get better pricing including Brand and Generic medication.
2- Pharmaceutical companies are free to price their medication in USA market with no competition with Canada, England and the rest of the world. While pharmaceutical companies are free to merge, reduce their taxes by relocating, in addition to other variety of techniques some of which was penalized by the government.
Just a thought.
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