When health reform burst onto the scene in the presidential campaign and then during the first year of the Obama Administration, the two primary goals were to increase coverage and to control costs.
Well… now that overhauling the system is officially on hold, we shouldn’t forget that health care spending continues to increase at an alarming rate. Governmental estimates show that health spending increased 1.1% to account for 17.3% of the GDP last year. That’s the biggest annual increase in 40 years.
Also of note is that governmental spending (Medicare and Medicaid) is growing faster than outlays by the private sector and in two years, governmental spending on health care will surpass private sector spending for the first time. The weakened economy hasn’t helped as unemployment has fueled some of the governmental spending.
Current estimates show that health care could top 20% of the GDP in ten years. 20%!