With ObamaCare’s Help, Healthcare Spending to Reach $4.6 Trillion in 2020

By:  Michael Tennant
08/01/2011
       
With ObamaCare’s Help, Healthcare Spending to Reach $4.6 Trillion in 2020

Those who predicted that ObamaCare would do nothing to reduce healthcare costs but would increase government control over healthcare have been vindicated by a new report from Medicare’s Office of the Actuary. According to the report, published in the journal Health Affairs, by 2020 the United States will be spending $4.6 trillion — nearly a fifth of the gross domestic product — on healthcare, almost half of which will come from government. What’s more, ObamaCare, far from reducing healthcare costs, will actually contribute significantly to the increase in spending.

The report begins by noting that 2009 and 2010 actually saw historically low growth rates (about four percent each year) in healthcare spending. The primary cause of the slowdown is the recession, which threw many people out of work, costing them their health insurance. Also, because of the weak economy, “many people continued to restrain their use of health care goods and services,” according to the report, so out-of-pocket costs did not climb as rapidly as before.

Those who predicted that ObamaCare would do nothing to reduce healthcare costs but would increase government control over healthcare have been vindicated by a new report from Medicare’s Office of the Actuary. According to the report, published in the journal Health Affairs, by 2020 the United States will be spending $4.6 trillion — nearly a fifth of the gross domestic product — on healthcare, almost half of which will come from government. What’s more, ObamaCare, far from reducing healthcare costs, will actually contribute significantly to the increase in spending.

The report begins by noting that 2009 and 2010 actually saw historically low growth rates (about four percent each year) in healthcare spending. The primary cause of the slowdown is the recession, which threw many people out of work, costing them their health insurance. Also, because of the weak economy, “many people continued to restrain their use of health care goods and services,” according to the report, so out-of-pocket costs did not climb as rapidly as before.

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