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US health spending to rise 5.8% annually due to these three reasons

While observing the 50th anniversary celebrations of its most popular health programs, Medicare and Medicaid, United States’ Centers for Medicare & Medicaid Services (CMS) has announced that in the annual US health spending will rise nearly 6 percent, annually, approximately in a decade.us-health-spendings-medicare-medicaid

According to CMS officials, US health spending will grow by an average of 5.8 percent annually by 2024 with smaller growth in physician services’ spending. The major expansions in the health insurance coverage under the Obama Administration’s Affordable Care Act (ACA), aging of the population and stronger economic growth expectations are said to be influencing the health spending growth in the US, according to Sean Keehan, Economist in the Office of the Actuary at the Centers for Medicare & Medicaid Services.

Sean Keehan said in a statement:

“Although this growth is expected to be faster than in recent past, it’s still slower than we’ve seen in the past 3 decades prior to the recession, when growth was roughly 9%.”

CMS celebrates 50th anniversary of Medicaid and Medicare.

Medicaid and Medicare, the popular health programs, have been protecting millions of seniors, people with disabilities and low-income individuals. According to the stats released by the CMS, 55 million Americans have enrolled in the Medicare program so far. In 2012, there were approximately 52 million beneficiaries covered by Medicare, while in 1966, nearly 19.1 million citizens were covered under this health scheme.

Andy Slavitt, CMS acting administrator, said in a statement:

“Over the last 50 years, Medicare has become part of the fabric of our communities, protecting the well-being and financial security of millions of American families as they age or if they become disabled. In doing so, Medicare has kept up with dramatic demographic changes and led the charge toward improving health care delivery. As we preserve and advance Medicare for future generations, we are focused on helping build a better system with a smarter spending that keeps people healthier.”

According to a report released by the Journal of the American Medical Association (JAMA), Medicare and Medicaid programs together serve over 111 million beneficiaries with a total of $1 trillion health spending in the US so far. These 50-year-old health programs represent 39 percent of national health spending and 43 percent of hospital revenue generation. The report also finds that the median income for Medicaid beneficiaries is $15K while the median income for Medicare beneficiaries is $23K.

Medicare program itself cost the federal government $587.5 billion in 2013, which supports 55 million citizens, including 9 million people with disabilities.

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7 comments

  1. I think the 3 reasons are: 1) U.S. does not have universal healthcare, 2) health insurance is virtually unregulated, and 3) drug companies continue to raise prices unchecked.

  2. Well put Monika! For- profit hospitals, big pharmacy & the health insurance trio of evil

  3. Add to that increasing American obesity, resistance to smoking and other well established public health measures and ineffective mental health services.

  4. Well, i hope you don't use any of the trio of evil's services.

  5. 1.I agree, we should have health care like our public schools. You can be assigned a doctor and a health facility. 2. There is virtually no regs at all in the health insurance industry. Most of the 20,000 pages in the ACA is water color pictures of Unicorns. 3. Big Pharma employees should work for little to no $, after all, don't they want to help people. Not to mention it costs hardly anything to get through government red tape for a med to get market approval. Research /development… Hiw much can that cost. The should be forced to do it at the $ amount WE decide.

  6. In years past, prior to the ACA, health care rose about 6% per year. In addition to saving the average family $2500, we were told the upward spiraling of health care would stop because everyone would be insured. Fortunately, now that it is passed, it is only rising about 6% per year. Perfect.

  7. The article title is entirely mis leading. Costs for ACA are not included.

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