Budget Buster: Health Care Costs Per Person Expected To Soar Past $10,000 For The First Time
The nation’s health care tab this year is expected to surpass $10,000 per person for the first time, the government said Wednesday. The new peak means the Obama administration will pass the problem of high health care costs on to its successor.
The report from number crunchers at the Department of Health and Human Services projects that health care spending will grow at a faster rate than the national economy over the coming decade. That squeezes the ability of federal and state governments, not to mention employers and average citizens, to pay.
National health expenditures will hit $3.35 trillion this year, which works out to $10,345 for every man, woman and child. The annual increase of 4.8 percent for 2016 is lower than the forecast for the rest of the decade.
A stronger economy, faster growth in medical prices and an aging population are driving the trend. Medicare and Medicaid are expected to grow more rapidly than private insurance as the baby-boom generation ages. By 2025, government at all levels will account for nearly half of health care spending, 47 percent.The latter part is one of the roots of the problem. With 10,000 baby boomers becoming eligible for Social Security and Medicare benefits every day for the next two decades, the burden on the welfare state is going to become heavier, especially if we have another four years of liberal policies after this presidential election. As for Obamacare itself, some health providers are leaving ACA markets, premiums are set to skyrocket, including the low-cost plans, and the exchanges are collapsing before our eyes. Obama is passing the buck on health care. And if it’s Clinton, we’re in serious trouble.