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.
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.
“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.