Friday, November 27, 2020
Stay connected with us

Home > News

National Health Spending to Accelerate this 2017

Update Date: Feb 23, 2017 12:03 AM EST

A brief slowdown has been experienced in national health spending in 2016. This 2017, the tides are expected to turn as a new analysis predicts that national health spending in the United States is expected to increase by an average of 5.6 percent yearly from 2016 to 2025.

CNBC reports that the pace of health spending for the national demographic this 2017 will lead to $1 out of every $5 for health care services. This report, conducted by health analysts reveals that the pace will run together with the national inflation rate of all other US goods and services by an average of 1.2 percentage points.

This analysis does not include the possible effects of the repeal of the Affordable Care Act, Obamacare, which is being placed by the Trump administration into a new legislation. If re-legislated, a bigger increase in health services, health care, and health insurance is expected for 2017 onwards.

Last 2016, a 4.8 percent increase in national health spending was observed. This drop was believed to be a result of the slowdown in the increase in spending on Medicaid, a government-run insurance coverage system primarily for poor people. A decrease in the growth of spending on prescription drugs was also observed last 2016. A total of $3.4 trillion was spent on health goods and services last 2016.

The analysis was posted on the Health Affairs website and indicates that under the current law, the national health expenditures is expected to grow at an average annual rate of 2.6% from 2015-2025. This amount will also represent 19.9 percent of the gross domestic product of the United States by 2015.

The rest of the projections were made with medical prices partially offset parallel to the slower projected growth in the use of medical goods and services. This has been observed from 2014-2016 and is associated with the Affordable Care Act coverage expansions.

See Now: What Republicans Don't Want You To Know About Obamacare

Get the Most Popular Stories in a Weekly Newsletter
© 2017 Counsel & Heal All rights reserved. Do not reproduce without permission.

Join the Conversation

EDITOR'S Choices