Health Care Spending

Health Care Spending

Tanya Vann

HCS/440

March 1, 2015

William Obert

The United States has an overwhelming dilemma by way of health care spending. Escalating health care costs are suppressing financial progression, utilizing rising quantities of the nation’s gross domestic product, and placing additional afflictions on industries, the public sector, people, and families. In the face of increased fears regarding the toxic effects of US health care spending, data regarding what is coercing costs is undeveloped. Majority of information about health care costs comes from the Medicare program as Medicare data has generally been the only thorough, reliable source of information on health care spending. “While we have very good information about Medicare, it only reflects the experience of elderly and disabled enrollees. One-half of the US population (and two-thirds of those with health insurance) has private health insurance” (HCCI, 2015).

2013 Spending: “In 2013, total national health expenditures in the United States reached $2.9 trillion, or $9,255 per person. The annual OATC report update (released Dec. 3, 2014) showed health spending continued a pattern of low growth—between 3.6 percent and 4.1 percent for five consecutive years” (NCSL, 2015). The shared conclusion of the Affordable Care Act’s coverage growth, rapid fiscal growth, and populace aging were anticipated to increase health spending growth this year and from then on (5.6 percent in 2014 and 6.0 percent per year for 2015–23). “Since health spending is expected to grow 1.1 percentage points rapider than the average economic growth during 2013–23, the health share of the gross domestic product is presumed to rise from 17.2 percent in 2012 to 19.3 percent in 2023” (NCSL, 2015).

In 2014 the escalation in national health spending was expected to quicken to 6.1 percent, indicating long-drawn-out insurance coverage through the Affordable care Act,...