Government
Government health care's share of the GDP growing
NEWS IN BRIEF — Posted Sept. 10, 2007
Health care is taking up a larger piece of the nation's budget pie and continues to grow faster than the economy, the Congressional Budget Office said in a new report. Total federal spending on Medicare and Medicaid is expected to reach 4.6% of the gross domestic product this year. This figure will reach an estimated 5.9% in 2017.
Demographic changes in the two programs only account for a small fraction of the expected increase over time, meaning that rising health care costs are the principal driver in this economic situation.
"Over the long term, the budget remains on an unsustainable path," said the CBO, which produces cost estimates for Congress. "Unless changes are made to current policies, growing demand for resources caused by rising health care costs and the nation's expanding elderly population will put increasing pressure on the budget."
Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/09/10/gvbf0910.htm.
