The United States today is spending more on healthcare than at any other time in the nation’s history.
According to a new report from the Centers for Medicare and Medicaid Services, the U.S. spent $3.2 trillion on healthcare in 2015, which is up 5.8 percent. This represents just under $10,000 per American.
Much of the growth in healthcare spending is due to Obamacare, Medicaid and Medicare. Ostensibly, the federal government is the biggest driver of healthcare spending. Last year, Washington accounted for nearly one-third of the nation’s entire health care bill.
“The faster growth in 2014 and 2015 occurred as the Affordable Care Act expanded health insurance coverage for individuals through Marketplace health insurance plans and the Medicaid program,” the report stated.
“Federal government spending on health increased 8.9 percent in 2015 after growing 11.0 percent in 2014, and outpaced all other sponsors of health care in both years. In 2015, the federal government was the largest sponsor of health care at 29 percent, up from 28 percent in 2014 and 26 percent in 2013.”
Here is a partial breakdown on what was spent in 2015:
- Medicare: $646.2 billion
- Medicaid: $545.1 billion
- Private health insurance: $1.1 trillion
- Total out-of-pocket spending: $338.1 billion
- Retail Prescription Drug: $324.6 billion
And healthcare spending is expected to soar over the next decade, says the report.
“While the 2014-2015 period is unique, given the significant changes in health insurance coverage that took place, health spending is projected to increase as the share of the overall economy over the next ten years and will be influenced by the aging of the population, changing economic conditions, and faster medical price growth.”
Who knows what the state of healthcare in the U.S. will be by the time Donald Trump is finished with it. He has pledged to repeal and replace Obamacare, though he has somewhat backtracked on that issue since becoming president.
The high cost of healthcare in the U.S. is going to force the government to come up with a single payer system. GDP grew 2% healthcare grew 5.8% and government spending on healthcare grew 11% in 2014 and 8.9% in 2015. I am sure it will be up in 2016 as well. We cannot continue to spend this kind of money on healthcare. Some limits (does the government really have to approve that electric scooter that costs $3,000, when a $650 scooter will do the same job?) and increased co-pays may be a short term fix. I see an increase coming on the medicare payroll tax. An increase on SS payroll tax also.