The Obama administration has announced on Wednesday that national health spending will be worth over $10,000 per person this year. After many years of slow growth, this amount is considered to be a game changer for health budgets.
In a report published recently, the administration has announced that healthcare will grow to a total 20% of the economy. In 2015, that share was of just 17.8%. By 2025, one out of five Americans will receive Medicare.
The main reasons that will cause health spending to grow are improvements in the economy, the higher cost of medical services and the aging of the baby boom generation.
By 2025, Medicaid is going to spend roughly 12,500 dollars yearly for each person. Kentucky has been one of the states which embraced the Affordable Care Act, which allowed tens of thousands of low-income families to afford high-standard medical care. However, the low-income families in Tennessee were not as lucky. People over there do not have access to free or low-cost health.
Unfortunately, costs for medical care are going to be higher than economic growth over the next ten years. That will leave some state governments unable to pay for medical treatments.
Although the economy is going to improve, it won’t grow at the pace needed to keep up with medical costs. By 2025, the government will account for half of the medical care spending.
The sickest states are in the South, and they have the highest rates of people with chronic diseases, without insurance and struggling with poverty – this may turn out to be an explosive mix in the years to come. National health expenses are already worth 3.35 trillion dollars, in 2016.
The analysis is going to be a harsh reality check for the major political parties as they prepare for the presidential elections. Under the new Affordable Care Act, more people than ever will be insured. However, the immense cost of medical treatment will be paid by all Americans. The system is similar to the European Health Laws, where most citizens’ medical bills are covered by a state insurance.
Are you covered by insurance? What do you think about expanding Medicare? Is it a good or a bad thing? Can we afford it? Leave a comment below.
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