Navigation Links
U.S. Health Care Spending to Double by 2017, Report Predicts
Date:2/26/2008

Spending could hit $4.3 trillion, account for one-fifth of gross domestic product,,,,

TUESDAY, Feb. 26 (HealthDay News) -- Spending on health care in the United States could double by 2017, reaching $4.3 trillion and accounting for 19.5 percent of the nation's gross domestic product, a new government report shows.

This finding follows last month's report that, for the first time, health care spending grew to more than $2.1 trillion in 2006, accounting for 16 percent of gross domestic product. Moreover, as baby boomers begin to enter the Medicare system, there will be a major shift in health care spending from the private to the public sector.

"Our expectation is that growth in health spending is expected to be steady over the projection, which is 2007 through 2017, at 6.7 percent per year," report co-author Andrea Sisko, an economist with the Centers for Medicare and Medicaid Services, said during an afternoon teleconference on Monday.

"At the same time, we are expecting economic growth to slow to an average annual rate of 4.7 percent. As a result, the combination of steady health spending growth and slowing economic growth will lead to the health care part of gross domestic product rising to nearly 20 percent by 2017, nearly one-fifth of the economy, Sisko said.

The report was published in the Feb. 26 online edition of Health Affairs.

Sisko noted that growth in public spending on health care will accelerate through 2017, while there will be a general decrease in spending by the private sector. "The acceleration in public spending growth is due to the leading edge of the baby boomer generation enrolling in Medicare," she said.

The decrease in private spending growth is related to the expected slowdown in overall economic growth, Sisko said. In addition, the report authors are expecting that disposable income will also decrease during the period, playing a part in the slowdown in private health spending.

The increase in private health care spending will drop from 6.6 percent in 2009 to 5.9 percent by 2017, according to the report.

In fact, by 2017, Medicare spending is expected to account for $884 billion, slightly over one-fifth of all national health spending. This is up from the projected spending level of $427 billion for 2007.

Hospital spending is expected to increase and gradually slow down through 2017, going from $696.7 billion in 2007 to more than $1.3 trillion in 2017. Prescription drug spending is expected to slow down initially and then start to accelerate through 2017, Sisko said. Drug spending will increase from $231.3 billion in 2007 to $515.7 billion in 2017.

This year, Medicaid spending is projected to grow 6.8 percent to $361.2 billion. Over the next 10 years, the program is expected to grow an average of 7.9 percent each year, reaching $717.3 billion or 16.8 percent of health spending by 2017, according to the report.

More information

For more on health care costs, visit the National Coalition on Health Care.



SOURCES: Feb. 25, 2008, teleconference with Andrea Sisko, economist, Centers for Medicare and Medicaid Services, Baltimore; Feb. 26, 2008, Health Affairs


'/>"/>
Copyright©2008 ScoutNews,LLC.
All rights reserved  

Related medicine news :

1. Five Years of VA Health Care for Combat Veterans
2. Partners Center for Connected Health and EMC Corporation Launch New Web-Based Remote Monitoring Program to Help Employees Fight Hypertension
3. Governor Rendell Tells Congress Prescription for Pennsylvania Will Improve Health Care Climate for Small Businesses
4. Microsoft and Microsoft Healthcare Users Group Announce Winners of MS-HUG Healthcare Innovation Awards 2008
5. Lilly and Partners In Health, Brigham and Womens Hospital Team Up to Fight MDR-TB in Former Soviet Republics
6. Hospira Announces New Contract With HealthTrust Purchasing Group for Infusion Devices, Solutions and Equipment
7. Norton Healthcare Delivers Information to the Point-of-Care with EMC Information Infrastructure
8. BancTec Takes Leadership Position in Helping to Create Better Value, Lower Transaction Costs in Healthcare Industry
9. Thomson Healthcare Announces Enhancements to Order Sets Solution
10. AT&T Delivers Benefits of RFID Inventory Tracking to Health First
11. Video: YMCAs Commit to Helping Americans Keep Their New Years Resolutions in Support of Health and Well-Being
Post Your Comments:
*Name:
*Comment:
*Email:
Related Image:
U.S. Health Care Spending to Double by 2017, Report Predicts
(Date:8/18/2017)... ... August 18, 2017 , ... With over 16,000 ... bioidentical hormone replacement therapy and integrative medicine, has become a frontrunner for people ... such as menopause, andropause, thyroid disorder and adrenal insufficiencies. , Founded in ...
(Date:8/18/2017)... ... August 18, 2017 , ... Alcovit, a lime-flavored beverage ... up its marketing efforts with its product now available through Jet.com. , After ... public. The effervescent powdered drink is designed to quickly detox the body thereby avoiding ...
(Date:8/18/2017)... ... 2017 , ... 800response, the leading provider of dynamic call-to-action ... launch of a redesigned corporate website, 800response.com . , Key features ... an enhanced search directory for businesses and advertising agencies to use to ...
(Date:8/18/2017)... ... ... “Dangerous Inheritance”: a mystery about saving the family farm. “Dangerous Inheritance” ... where she was raised on a farm. As Diane wrote this story, she ... friendships and mantra of ‘neighbors helping neighbors’ have always been a large part of ...
(Date:8/18/2017)... ... August 18, 2017 , ... “Beyond Our Imaginations: The Infinite God”: shows the ... Infinite God” is the creation of published author, Mark Lawrence, born in Michigan, the ... “The problem with becoming a greater man of God is that I have to ...
Breaking Medicine News(10 mins):
(Date:8/7/2017)... International plc (NASDAQ: ENDP ) today announced that ... U.S. mesh product liability claims and that it is ... claims at reasonable values. Under the agreements, Endo will ... 2017 and continuing through the fourth quarter of 2019. ... Company intends to increase its mesh product liability accrual ...
(Date:8/2/2017)... 2, 2017 Fenita J. Caldwell ... a Pinnacle Lifetime Professional in the Field of ... at Turing Pharmaceuticals, AG. Her skills and areas ... building.                ... years of experience as a highly successful sales ...
(Date:8/1/2017)... --  CerSci Therapeutics , a non-opioid drug development firm ... received notice from the National Institute on Drug Abuse ... it has been awarded a Direct-to-Phase II Small Business ... with an additional $1,000,000 to follow in 2018. These ... their lead non-opioid drug candidate CT-044 to the Food ...
Breaking Medicine Technology: