Thursday, February 4, 2010

Health Costs Rising

Last year 17.3% of our nation's economy involved health care, about $2.5 trillion. The jump in health care's share of GDP was the largest one-year increase since the government began keeping records on it 50 years ago.

The federal Centers for Medicare and Medicaid Services (CMS) also predicted that for the first time government programs will account for more than half of all U.S. health care spending next year, or 50.4% The weak economy is slowing the growth of private insurance and sending more folks into Medicaid. Just last year they predicted that this wouldn't happen until 2016.

Baby Boomers begin turning 65 next year, a sign that America's aging population will continue to require more medical care even as they live longer. Meanwhile health care reform efforts in Congress are stalled as partisan bickering continues to delay any real change in the current situation.

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