Highest Cost of U.S. Healthcare Ever
For the first time in history, United States healthcare is expected to cost over $10k per person. This means that as the Obama administration transitions out of the White House, the new administration will inherit the problem of high healthcare costs.
According to National Health Spending Projections, healthcare expenses will grow at an even faster rate than the national economy will spend over the following 10 years or so. Specifically, the expected growth is 5.8% from 2015 to 2025. This is not the fastest growth rate in U.S. history but it is the fastest since the 2007-2009 economic recession.
To break down the numbers: national health spending will reach $3.35 trillion in 2016. Divvied up by every child, woman, and man, the cost per person works out to be $10,345. For 2016 alone, the annual increase is forecasted at a 4.8% increase, lower than the projected percentage for the rest of the decade.
So why this increase?
The economy is strengthening, medical prices are growing, and the present population is aging – which is driving the trend of this increase. As the baby-boomer generation ages, Medicare and Medicaid are anticipated to grow faster than private insurance.
By year 2025, the U.S. government will be responsible for about 47% of all healthcare spending.
This analysis of healthcare expenditure is at the top of the list for major political parties to consider as they are in preparation for the presidential conventions to come.
Will Obamacare remain steadfast? Donald Trump (Republican) has vowed to rescind Obamacare but stipulates that he will not cut Medicare or leave individuals “dying in the street.” While presidential candidate Hillary Clinton (Democrat) has pledged to broaden government healthcare benefits.
President of the Committee for a Responsible Federal Budget, Maya MacGuineas stated “No serious candidate for president can demonstrate fiscal leadership without having a plan to help address these costs. No matter whether a candidate has an agenda that focuses on tax cuts or spending increases, there will be little room for either.”