US Healthcare Spending May Double
A report by Centers for Medicare and Medicaid Services offers predictions on healthcare spending in United States for the coming ten years. It expects healthcare spending to rise and economical growth to decline, leading to even more increased spending.
* From 2007 to 2017 healthcare spending is estimated to rise by 6.7% annually. Meanwhile economic growth will decrease to 4.7% annually. Spending will reach $4.3 trillion, compared to 2006's $2.1 trillion. In 2017 healthcare spending will account for 19.5% of domestic product costs compared to 2006's 16%.
* Public health spending is going to increase, but private sector spending will decrease. It will drop from 2009's 6.6% to 5.9% by 2017. This is directly caused by economic growth slowness.
* Medicare spending is predicted to account $884 billion by 2017, compared to 2007's $427 billion. The increase will take place because of increasing number of Medicare enrollment of baby boomers.
* Hospital spending will increase to $1.3 trillion by 2017, compared to 2007's $696.7 billion.
* Prescription spending will slow down a bit, but will go up again by 2017 to $515.7 billion, compared to 2007's $231.3 billion.
* Medicaid spending is expected to grow by 6.8% in 2008 reaching $361.2 billion, by 2017 it will grow by 7.9% reaching $717.3 billion.
"Health is projected to consume an expanding share of the economy, which means that policymakers, insurers and the public will face increasingly difficult decisions about the way health care is delivered and paid for," CMS economists said.