Thursday, February 24, 2005
Government health care spending projected to outpace private spending
[Pauline Jelinek, "Medicare change boosts government share of health costs," Associated Press, The Lawrence Journal-World, 24 February 2005.]
The new Medicare drug benefit is tipping the scales in favor of government-provided health care in the U.S., but the trend has been on its way up for decades. Based on the outcomes in more socialized countries, this is a trend we should be working to reverse:
Within a decade, the government will be footing the bill for nearly half the nation's medical costs, its share propelled higher by the new Medicare drug program, administration economists estimated Wednesday.
At the same time, total health spending -- both private and government -- will take an ever-larger portion of America's economic output, said the report from the Centers for Medicare and Medicaid Services.
By 2014, overall medical payments are projected at about $3.6 trillion, with the government footing $1.8 trillion, or 49.4 percent, and private funding covering just over 50 percent, it said.
The federal share has been rising for decades. In 1965, the government was covering roughly 25 percent of health costs and private parties 75 percent, according to the report. Last year the government paid 45.6 percent of an estimated $1.8 trillion in medical bills.
Eventually, the two sides will reverse roles, with the government paying more than half.
[Richard B. Warner, MD, "The Real Culprit," The Flint Hills Center, December 1997.]
[Pauline Jelinek, "Medicare change boosts government share of health costs," Associated Press, The Lawrence Journal-World, 24 February 2005.]
The new Medicare drug benefit is tipping the scales in favor of government-provided health care in the U.S., but the trend has been on its way up for decades. Based on the outcomes in more socialized countries, this is a trend we should be working to reverse:
Within a decade, the government will be footing the bill for nearly half the nation's medical costs, its share propelled higher by the new Medicare drug program, administration economists estimated Wednesday.
At the same time, total health spending -- both private and government -- will take an ever-larger portion of America's economic output, said the report from the Centers for Medicare and Medicaid Services.
By 2014, overall medical payments are projected at about $3.6 trillion, with the government footing $1.8 trillion, or 49.4 percent, and private funding covering just over 50 percent, it said.
The federal share has been rising for decades. In 1965, the government was covering roughly 25 percent of health costs and private parties 75 percent, according to the report. Last year the government paid 45.6 percent of an estimated $1.8 trillion in medical bills.
Eventually, the two sides will reverse roles, with the government paying more than half.
[Richard B. Warner, MD, "The Real Culprit," The Flint Hills Center, December 1997.]
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