According to government experts, in spite of a recent reduction of medical costs, the nation’s health care expenses will continue to outpace economic growth for the predictable future. Such a forecast indicates more turmoil for Medicare Plan and Medicaid, as well as private insurance.
President Barack Obama’s health care revamp is expected to add $478 billion in spending over the 2011-2021 period covered by the projections, increasing coverage to some 30 million uninsured people. But the problem of growing health care costs cannot be done away with even if the Supreme Court overturns Obama’s law or his Republican rivals finally succeed in revoking it.
By the start of the next decade, health care expenditure is expected to grow approximately by 2 percentage points quicker than the overall economy according to the report from Medicare Advantage Plan’s nonpartisan Office of the Actuary.
The findings will have implications for both sides of the political divide if health care spending isn’t brought in tandem with overall economic growth, Americans will ultimately have to confront distressing choices between paying medical bills and funding other main concern such as education and infrastructure.
By 2021, health care is expected to account for nearly 20 percent of the U.S. economy, the report found, up from under 14 percent in 2000. Controlling costs is one of the ways of solving federal budget difficulties. This however is not possible without major modifications to Medicare insurance and Medicaid.
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