Reply #28: Speaking of medical costs -- Health-Care Spending in U.S. May Be $4.1 Trillion by 2016

[54anickel]

http://www.bloomberg.com/apps/news?pid=20601103&sid=aIqMWqKYwGkQ&refer=us

Feb. 21 (Bloomberg) -- U.S. health care costs may almost double over the next 10 years to $4.1 trillion annually, or 20 cents of every dollar spent, according to a study by federal economists and actuaries.

The estimate is based on a 6.9 percent average annual growth rate in health-care spending. The study, conducted by the U.S. Centers for Medicare and Medicaid, was published today in the Web edition of the journal Health Affairs.

Federal health programs such as Medicare, which covers seniors aged 65 and older, will grow at a faster rate than private spending, the study's authors said at a news conference yesterday in Washington.

``As the nation moves from more traditional sources of insurance, such as employer-based coverage, to more federal and state-provided health care, we will continue to face tough questions about how we finance our health-care bill,'' John A. Poisal, deputy director of health statistics for the Medicare and Medicaid centers, said in a statement.

The study estimates health spending in 2006 at $2.1 trillion, 16 cents of every dollar spent in the U.S. economy.

Public spending on health care increased an estimated 9.9 percent last year, up two percentage points from 2005, mainly because of the start of Medicare's prescription drug plan, researchers said. From 2008 to 2016, public spending is projected to grow 7.5 percent a year.

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