A healthy jump

Government: Health care costs to increase next year
Associated Press
Sep 19, 2013

The nation's health care spending will jump by 6.1 percent next year as the big coverage expansion in President Barack Obama's overhaul kicks in, government experts predicted Wednesday.

That's more than 2 percentage points higher than the growth rate forecast for this year, and compares with a growth rate that has hovered under 4 percent, historically low, for the past four years.

Much of the increase projected for next year is attributed to the new health care program, which is expected to provide insurance coverage to millions of currently uninsured Americans beginning Jan. 1.

Without it, the estimated growth would be 4.5 percent, according to the report Wednesday from Medicare's Office of the Actuary. The findings were published online by the journal Health Affairs.

Other factors driving up spending include an improving economy and the aging of the nation's population.

Over the longer term, the health care overhaul would only be a modest contributor to spending increases, the report said. From 2012 to 2022, the new law is projected to add about 0.1 percent to average annual health spending growth.

In all, Obama's plan will add $621 billion to health care spending over that 10-year period, while expanding coverage to some 30 million uninsured people, experts said.

Some 11 million people are expected to gain health insurance coverage in 2014, mostly through new state insurance markets the law sets up or through expanded eligibility for Medicaid, the federal-state insurance program for low-income people.

Medicaid enrollment alone is expected to increase by 8.7 million people next year.

Many of the newly insured are expected to be younger and healthier. They're expected to devote a larger share of their health care spending to prescription drugs and physician and clinical services and a smaller share to hospital spending.

Out-of-pocket spending for individuals and families is projected to fall 1.5 percent in 2014 because of the new coverage and lower cost-sharing for people with improved coverage.

The report said the recent low rates of spending growth are a persistent effect of the economic recession, which includes employers shifting more health care costs to employees, pressure on government budgets and consumers forgoing or delaying treatment.

National health spending is expected to grow at an average annual rate of 5.8 percent from 2012 to 2022, 1 percentage point higher than the growth rate for the overall economy in that period, the experts said. As a result, the share of gross domestic product devoted to health care is forecast to rise from 17.9 percent in 2011 to 19.9 percent by 2022, the report said.

The most significant one-time effects on spending of the coverage expansions under Obama's plan are expected to subside beginning in 2016.

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Online:

Health Affairs: http://content.healthaffairs.org/lookup/doi/10.1377/hlthaff.2013.0721

 

Comments

SamAdams

Gee, you THINK???

The Big Dog's back

Out-of-pocket spending for individuals and families is projected to fall 1.5 percent in 2014 because of the new coverage and lower cost-sharing for people with improved coverage.

Did you even read the article? You said before premiums were going to double. What gives sammie?

deertracker

Don't mind ShamAdams, she just recently had a frontal lobotomy!

Contango

Re: "frontal lobotomy!"

Off-topic Bambie.

MiddleRight

Thanks sheep that re-elected this fool. Hope your happy living with your gov't exchange insurance program. Better start exercising and eating right, cause they aren't going to pay to save your life!

deertracker

Sheep? The Cons are the biggest sheep EVER! You should be eating right and exercising ANYWAY! Do you really think you health insurer gives a hoot about you? WAKE UP!!!!!!!!!!!!

Contango

Re: "Many of the newly insured are expected to be younger and healthier."

Yet ANOTHER cross-generational theft from healthy youth to help pay for the health care of unhealthy oldsters.

This Obama economy is creating so many McJobs, that many will not be able to even pay for "affordable" healthcare ins.

This new Ponzi scheme will collapse under it's own weight and complexity.

The Big Dog's back

Not in your lifetime.

Contango

Re: "Not in your lifetime."

You're off topic putz.

Yea, Obama postponed the employer mandates and the unions are bitchin' about it 'cause it's working SO well. LMAO!!!

4shizzle

More spin from the propagandist.

Contango

Re: "More spin"

Where's the "spin" 4sh*t?

Obama DID postpone employer mandates and unions ARE bitching.

http://www.bloomberg.com/news/20...

http://www.forbes.com/sites/thea...

Try to keep up will you slow wit?

4shizzle

@ Cuntango

You spin Obamacare as though it were a terrible thing, you miserable old man.

Contango

Only a (bleeping) narcissist would enjoy referring to ACA with his own name.

Medicare should be Johnsoncare and SS should be Roosevelt Security.

Have a nice day defending your pathetic little sociopathic Messiah 4sh*t.

4shizzle

you're such a miserable old man - you should have been stillborn.

The Big Dog's back

He refers to it as Obamacare because that's what you right wingnuts tagged it.

Contango

"Debate enshrines the political term 'Obamacare'"

"'Obamacare is on my list,' Romney said, turning to Obama: 'I apologize, Mr. President. I use that term with all respect.'"

"'I like it,' Obama replied."

Like I wrote putz: A (bleeping) narcissist.

http://www.usatoday.com/story/th...