Health Care Costs To Keep Rising

Economists Say Health Care Will Account For $1 Of Every $5 Spent In U.S. By 2016

(CBS/AP)  Health care is expected to account for $1 of every $5 spent in the United States in another decade.

That means a rise in out-of-pocket expenses, such as the co-pays for medicine, from about $850 this year to about $1,400 in 2016, a 5.3 percent annual increase.

The cost of health insurance is projected to rise even more quickly during that same time — 6.4 percent annually.

Over the coming decade, spending on health care will continue to outpace the overall economy. By the year 2016, it will total close to $4 trillion, economists at the Centers for Medicare and Medicaid Services said in a report being released Wednesday.

Today, the number is closer to $1 out of every $6, or $2 trillion.

"It's our expectation that by the year 2016, the end of our projection period, that health care costs, which currently consume about 16 percent of the total economy's expenditures, or GDP, by 2016 will consume about 20 percent of GDP," John Poisal, deputy director of the government's National Health Statistics Group, which did the study, told CBS Radio News.

Officials are worried by the news, reports CBS News national correspondent Byron Pitts.

"This report is cause for concern," says Herb Kuhn of the Centers for Medicare and Medicaid Services. "Health care costs are going up much faster than general inflation."

Consumers are spending more on the latest treatments, despite their rising costs. For example, federal officials cite a significant increase in the use of imaging to detect blockages or other diseases.

Income will also play a significant role in the greater health spending. Historically, when income rises 1 percent, health expenditures go up about 1.5 percent, officials said.

"What that indicates is a desire to purchase good health," Poisal said.

Health and Human Services Secretary Mike Leavitt has spent recent weeks traveling throughout the country, urging consumers and caregivers to give greater consideration to the price of various health procedures.

"People who have health insurance often don't care about price. People who don't have health care insurance can't find out the price even if they ask," he said in Detroit. "Medical pricing is a mystery to everybody."

The administration is pushing government agencies, insurers and health care providers to make information available that would help consumers become good shoppers. For example, Medicare lists the percentage of pneumonia patients at various hospitals who received a timely antibiotic, which is an indicator of the quality of care.

"We hope this information will help inform the discussions that go on at several different levels," Poisal said, "including those in Congress and other policy makers, other researchers and certainly the public needs to be informed of these things so that collectively we can make decisions about how to best proceed."

The economists said their study doesn't determine how much the rising costs will affect the average family in the U.S. There are too many factors involved, particularly when the federal government accounts for about half of overall health spending through programs such as Medicare, Medicaid and the Department of Veterans Affairs.

The economists also predict that government programs will gradually replace employers when it comes to providing health insurance for millions of Americans.

"We are moving incrementally away from traditional sources of insurance, such as employer-based coverage, to a system comprising more federal and state government-provided health care," said the economists, whose report will be published in the journal Health Affairs.

[mgum1215]

Pay a little higher taxes and have free health care for all who qualify. Goverment has made it easy to qualify. Ive got family that lives in Canada and loves their system. Insurance companies have no controll on who is covered and who is not and get this, the insurance companies have no controll of cost, just influences with board.

KU Born

[son54c]

Medical care is a huge "rip-off" as it stands now. A national healthcare program for "ALL" citizens would be the way to go. We spend enormous amounts looking for water on Mars, the costly space program in general, and foreign "giveaways", why not give citizens healthcare? We have a huge amount of tax dollars wasted, including fraud and "misuse" by defense contractors. Why not give that money to healthcare? We need food, water, shelter, clothing and healthcare to survive. The government should work for the people and ensure those needs, it's only humane to do so.

[kevboom]

You hear the argument all the time that socialist health care with price controls will stifle industry reinvestment in research, development, and innovation, but you have to wonder how much of that is true versus health care industry lobbying. The industry can obviously afford to buy out every advertising slot on television between 6:30pm and 7:00pm every weeknight to push drugs during the evening news. How about initiating some price disclosure rules with controls. Instead of cutting their R&D, the industry could cut out all the senseless drug-pushing ads catering to a society needing its next fix from the purple, blue, or green pill. The solutions aren't nearly as tough as Congress would lead us to believe. They just don't want to tick off their lobbyist friends from health care who use profits from overcharging consumers to buy off politicians. Corruption in a word. Socialist health care isn't all bad. Consider the source of the complaining.

[dallison7]

My wife is an ER nurse practitioner. She said the wait for care was 9 hours yesterday. Our health care system is broken. Those who cannot afford to see a doctor are forced to go to the only place that cannot refuse care... the emergency rooms. As a result ER's all across the country are overwhelmed with patients with colds, flu, etc. A visit to an emergency room is very expensive, $1500 average, and we the taxpayers are paying for it. A single payer plan would allow those people to go to family clinics at about $75 per visit. Doesn't that make sense?

[kpokey]

We spend billions on a war in Iraq and still don't know why we are there, but we can't spend billions on Americans. That is insane. We need national healthcare.

[drinuk]

When are people going to understand why most of the world is having serious problems financing healthcare and that taxpayers are being totally ripped off by the worldwide Pharmaceutical Cartel. They do as they wish with the concent of the FDA, politicians and the So Called ethical medical profession who are afraid to speak up.

They instruct the FDA to prosecute natural proven and cheap remedies, they kill without a care for patients and worse still they exert dishonest influence upon governments, many of whom are in bed with them. They prevent honest meaningful research into cheap natural cures and create health scares such as Bird Flu to sell millions of their useless and dangerous vaccinations. Big Pharma have built a profitable mega business from cancer, whilst natural cures are outlawed at their request.

For God's Sake wise up folks these bloody people are wicked, they are Satanists, almost too powerful to be stopped. Even Bill Gates is in bed with them on the pretence of saving Africa and the poor. His money would be better used providing clean water and a good diet instead of killer Aids drugs.

Tell me, just when did they cure any condition, there 'aint no cash in a cure, it is all about dependency. Any government worth a light would totally clear out the FDA, ban the Pharma Lobby and sprip the assets from all those found to be in collusion with Big Pharma.

Should Mr Bush require a legacy he could put his Christian values to good use on this corruption.

[drinuk]

Cont.

The light on the horizon which will put a stop to the Illegal activities of Big Pharma is in this medium, the Internet. We may not as individuals have the money to fight corrupt officials and politicians who consort with the Pharma lobby but we have millions of friends out there with whom we can talk and influence. Together the people will break up this evil cartel who are way out in front of Muslim extremists when it comes to harming ordinary people worldwide. Their wickedness is almost unique in history and must be stopped sooner rather than later.

Look no further for the reasons causing the financial crisis than the pharmaceutical companies and their friends in government. They are the Real Snake Oil Merchants, it's time to run them out of town.

[mitywhity]

The system is being abused by all you folks who think health insurance should pay for every little thing - Dr. visits, shots, exams, etc. Do you file a claim for gasoline, tires,or oil changes on your auto insurance? What would auto insurance cost if you could? What would auto-service centers charge if auto insurers covered their services and products? Apply the same arguement to homeowners insurance - see the problem? WE ARE THE PROBLEM! Take responsibility for yourself and get off entitlement-mentality merry-go-round. You'll save a lot of money with major medical only with a high deductible. I have no idea why employers don't all come together and cancel their sponsoring of health insurance.

[mitywhity]

Ive got family that lives in Canada and loves their system.

Yeah, it's great until you have acatastrophic illness - cancer, cardiac, debilitating disease, etc. Then you get relegated to the "cafeteria line" and wait on your turn. My Dad would be dead if he had lived in Canada when he had INOPERABLE adenoidal cancer 8 years ago. Without immediate (2 days later)access to radiation therapy and chemo he would have been beyond help.

[mitywhity]

The government should work for the people and ensure those needs, it's only humane to do so.

Posted by son54c

PEOPLE should work for their own needs. ONLY when they have shown their WORK is not sufficient, should they be helped. Every town in the US has a skidrow of welfare housing projects packed with unproductive, unmotivated CONSUMERS of aid that should go to people who have demonstrated their desire to WORK and are in a "slow" period. Government is not Momma and Daddy - pull your own weight.

[cherokee_133]

I think there is a place for social medicine in America. Case in point: I work at a small company and I have Blue Cross/Blue Shield for myself, but to add my husband (37 years old) would cost about $700 additional per month. Luckily, he is a card-carrying Cherokee Indian and he therefore gets free care at the Indian Hospital in our hometown. Amazingly, he gets better care than I do. Over the past two years, he has had about $20,000 or more worth of medical and dental procedures done, including a lithotripsy, treatment for his bleeding retina, and treatment of his gingivitis -- all successful, and every single cent paid by the Cherokee Nation. He is also on Medicare as well as disability for a neurological disorder. If he would have been on my Blue Cross/Blue Shield, he would still be suffering from periodontal disease, kidney stones, and probably would be blind by now.

[mitywhity]

Those who cannot afford to see a doctor are forced to go to the only place that cannot refuse care... Those folks are already on welfare for the most part, for the most part here in Georgia they are illegals. That burns me up!!! They drive around in their practically new vehicles, yet they want "free" healthcare. You are right, they come in for non-issues; colds and minor aches and pains - that is the junk that burdens the insurers as well. The ERs should refuse anyone who is has no broken bone, laceration, trauma, etc. - serious problems. I hate to be so angry, but these illegals are sucking us dry along with the career welfare recipients!

[mitywhity]

If he would have been on my Blue Cross/Blue Shield, he would still be suffering from periodontal disease, kidney stones, and probably would be blind by now.
Posted by cherokee_133

That's pretty presumptious isn't it? Why is not your own responsibility to pay for at least SOME of your OWN needs? That's the attitude that just flips my switch! I worked at a company that was going to charge me $260 a week to cover my family of 5 members. I went out and bought a major medical policy with a $5000 deductible for $250 a month. I save money every month and pay myself another $250 a month into a savings account to cover my deductible. I PAY for all the dr. visits and meds with a discount program I joined that saves me 50% per visit or med. That program costs me $30 a month. There are ways to save money and still have healthcare. You just have to want to.

[anopinion1]

ever think how much of the money spent now is on people that do not contribute to society or ever have contributed to society....
someone has to say it...why do we spend so much on the mentally retarted
or how about the person on life support brain dead for years because the family won't let their loved one go..

or people that bring their kids and them selves in for ever single bump they have ever gotten....they need to give classes on not being stupid

[cherokee_133]

mitywhity,

But we both have seizure disorders, and we are considered high risk, so don't assume that a fly-by-night health insurance company would accept us instantly. Believe me ... I have checked all over the place. You probably don't know what it's like to be discriminated against in the health insurance world if you have a seizure disorder. Don't be so quick to judge.

[tuckerndfw]

A good place to start wuold be eliminating "free" health care for congressmen, judges & the white house staff, including president & V.P.

They could set the example by giving up their extravagant health care benefits including "free" routine checkups.

The president & vice president's retirement benefits should be totally eliminated so they can demonstrate taking ownership of their own futures instead of relying on taxpayers to support them in their "golden years."

Too bad that will never happen because the rich and powerful abhor paying their own way. They didn't get rich & powerful by using their own money. Or, their own (physical) effort.

[mitywhity]

Don't be so slow to state your case. How do I know your medical history? All I know is that my insurerer would not underwrite hepatitis-C or AIDS sufferers. My daughter has acute asthma and we were able to get her completely covered. There are high-risk insurers out there.

[mitywhity]

A good place to start wuold be eliminating "free" health care for congressmen, judges & the white house staff, including president & V.P.

They could set the example by giving up their extravagant health care benefits including "free" routine checkups.

The president & vice president's retirement benefits should be totally eliminated so they can demonstrate taking ownership of their own futures instead of relying on taxpayers to support them in their "golden years."

DITTO DITTO DITTO!

Problem: You just described social security. I will give up future benefits if they'll let me opt-out of present and future paying in.

[mitywhity]

fly-by-night health insurance company ???????

Darlin' I ain't cheap, just frugal.

[candojj1]

Our family lived abroad for 5 years. We belonged to an HMO. Our Dr.%u2019s were Iranian, Romanian and Russian. They were the finest most knowledgeable physicians we have ever had. When we needed pills, we went to the central pharmacy in the building of the HMO. There was no competition. Until the U.S. realizes that playing with the life of a human being is not worth arguing about, that each life is sacred, until that actually happens - we are losers. We will continue down the path of folly. Where men and women indenture themselves to banks and schools with hundreds of thousands of dollars worth of debt as our doctors do, they become slaves of the system. They can not give the care that people need. They give the care that the HMO dictates %u2013 a CAP of 1-5 minutes per patient. I want my doctor from the University of Tehran or from Bucharest or from Moscow. I want pills from Canada or Europe or Israel. I want it now and with out all the hog wash political b.s. of the governors struggle against a bunch of legislators that will block every move. I want the FDA to go away. I want special VISAs for doctors and nurses and not for baseball and basketball players or computer programmers.

[tuckerndfw]

Insurance costs are going to skyrocket if these corrupt politicians are allowed to pass laws requiring everyone to buy insurance.

Insurance only provides coverage to those who don't need it or can afford to spend millions on lawyers to collect thousands in claims.

The US already has "universal health care" without the requirement for insurance. It is called the "emergency room." What needs to change is how that health care is provided. Taxpayers do not need insurance companies in the middle of that process. Insurance companies would do nothing other than add to costs while providing no services.

Private insurance companies should not be allowed to exist. They provide nothing worthwhile.

[tuckerndfw]

whity,

You asserted you are wealthy.

If that were the case, you would not be paying social security. Social security is a payroll tax that is only paid by those collecting a paycheck from an employer.

Wealthy people do not typcially collect a paycheck. They do not pay social security.

[cherokee_133]

mitywhity,

Don't be too quick to assume that we can afford being in the high-risk pool. I live in a part of the country (Oklahoma) where fortunately the cost of living is low, but the wages are lower than average (I make $11 an hour as a mental health medical transcriptionist); however, at the same time, the cost to be in a high-risk pool is in the neighborhood of $750-$100 per month. Also, as I said earlier, my husband utilizes socialized medicine (Indian Health Service) and he gets better care than I do. As far as medical procedures for myself, there are instances I have to put those off because I can't afford the deductible and the 20%-30% co-pay.

[cherokee_133]

ADDENDUM: Fortunately, we do not have kids.

[mitywhity]

whity,

You asserted you are wealthy.

I have to pay in up to the cut-off just like everyone else on a yearly basis. Eh? What's the deal?

I just believe it is money shot up a hog's butt.

[tuckerndfw]

I have to pay in (Social Security) up to the cut-off just like everyone else on a yearly basis. Eh? What's the deal?

I just believe it is money shot up a hog's butt.

Posted by MITYWHITY at 12:34 PM : Feb 21, 2007

In other words, you are not wealthy, you are collecting a paycheck.

And, if you are wealthy, why would you be concerned about collecting a paltry social security check? Or, paying the trivial amount collected for social security?

Social security was not and is not intended for wealthy people. It is intended to provide basic subsistence for workers who are no longer able to work.

And, anyone who would deprive them of that basic subsistence is contemptible beyond words or understanding.

[cathaleen]

The reason health care is rising is because the govt is allowing it to. They should put a cap on what the costs should be. I recently had a small injury and the bills amount to $5,000. This was for a few pills and a couple of exrays. It's rediculous. Soon even if you have health insurance, you won't be able to afford it. It's
criminal.

[neojoker]

I guess this is the startup to the buildup of why Social Security, Medicare, Medicaid...and even, Grandma and Grandpa...has to go, lol. We will be seeing a lot more soon.

[fizzal-2009]

Vote for John Mcain. He wants to repeal roe vs wade and fix health care by giving the doctors a windfall profit in lawsuit for loss of income for aborting a future customer. Cumulative comensory damages for loss of shots, examimations ,and perscriptions with doctorly advise, and with the way some people act maybe add distemper shots to the list.

[neojoker]

If they do change Social Security or Medicaid etc...they need to write us a check for what we have in it, then they can change it. I don't think they should just, STEAL it, lol, but do we really have any power as citizens in this country anymore, against the money grubbers?

[tuckerndfw]

If they do change Social Security or Medicaid etc...they need to write us a check for what we have in it,

Posted by Neojoker at 01:27 PM : Feb 21, 2007

No one has money in a Social Security account. Social Security is a name given to an obligation (tax) US employers & employees pay and employees receive from the federal government.

It is an employers' & workers' tax and benefit only paid to workers.

But, it is not an actual account in which anyone has money. There is no "social security trust fund" except as an accounting entry.

The US government borrows money from China, Saudi Arabia, Japan, and many others just to pay the bills each year, including Social Security or Medicaid/care. There are no "trust funds."

[drinuk]

I will repeat what I wrote earlier, the cause of all the financial mess are the Drug Companies and their incestuous relationship with the FDA and Politicians. These crooks are S C R E W I N G everyone and killing many thousand, with the help of those in Washington to whom you rely for your well being. We are having the same problems in Europe, these companies are evil parasites, the time as come to Run'Em Out Of Town

[anopinion1]

here is a good idea..
quit and ban everything to do with slowing the effect aids has on a person. let it do its course.
the longer someone wiht aids is kept alive the more and more it will be spread..

probably the same with alot of things.
put the money to finding ways to prevent these diseases.
this will never happen tho because the drug dealers (aka pharmacuticals) can make a raping on this countrys citizens.....and anyone that has ever ( and i am sure their are ) found a way to cure or prevent letst just say aids or cancer will be scilenced if at all possibly. because their is no money in this.

[eggy1620]

The big 3 welfare gigs, social security, medicare, and medicaid, should be optional, not forced. If you don%u2019t want to collect future benefits, you should not have to pay present taxes. Converseley, if you do not think you can manage your money well enough to support your retirement, you can pay current taxes. But you would be betting on enough workers to voluntarily pay into the system presently and in the future.

Personally, my wife and I do not enough consider future welfare for which we pay current taxes as part of our retirement equation. Our personal retirment accounts will sustain us, and if the big 3 welfare gigs still exist in 30 years, great!

Universal health care should not be the only option. Private insurance will always have its place. After all, I demand the right to purchase better services than YOU!!!! And believe me, no MD facing down 100K or more in student debt worth his salt is going to work for a universal health care system. A universal system will undoubtedly get the docs who graduated last in their class.

[tuckerndfw]

Doctors, hospitals and drug companies are some the most influential (wealthiest) lobbies in Washington.

And that is the primary reason congress & the White House will ensure Americans pay more for less health care than the people of any other nation on earth.

[drinuk]

anopinion1 is quite correct, there 'aint no cash in a cure, Big Pharma make money on dependency and comfort whilst at the same time filling us full of poisons like Aspartame and Splenda so that we get sick and ask for more of their junk.
They have turned cancer into a massive highly profitable industry, whilst a simple effective and natural cure, The Apricot Kernal as been banned by the FDA at thier suggestion and bogus report. I do believe however that they are being judged as of now, both they and those helping them to financially rape us and knowingly harm us, will soon suffer because of their evil deeds.

[drinuk]

Yes apple2pie, they are a business ! they are in the business of "s c r e w i n g" the sick, ably assisted by Big Pharma.

[neojoker]

I wasn't aware of the apricot kernal, DRinUK. I'll have to do a search.

[anopinion1]

agreed

[drinuk]

neojoker, go to www.rain-tree.com look at Graviola, Bitter Melon and several other non patentable plants. The Apricot Kernal, check out vitamin B17.

[afmca]

The first thing from Republicans will be a market based solution based on personal investment. Unfortunately for medical care this does not work. If you let market forces define the care you can afford - the ones with the least get one option - death. First we need a total system approach in which EVERYONE must join and pay some percentage of the cost. This will spread the risk across a huge population of healthy and unhealthy. All businesses must also pay a percentage so that nobody gains a competitive advantage. Pharma must be reigned in with public advertising and political contributions eliminated. Legal remedies must be on the table - gross negligence must be punished; but one cannot expect a perfect outcome for every surgical or medical procedure. Common sense must prevail and many lawyers will become unemployed.
Think our politicians will respond - duh !!!!

[drinuk]

afmca. Absolutely on the button but dont be so pessimistic, as more people become aware of the evil scams and the incestuous relationship, politicians will fall in or get voted out. A few jail terms may focus their minds.

[lonestartnow]

I'm posting as co-founder of a wellness initiative that addresses those mostly preventable diseases relating to obesity, overweight and lack of physical activity, that as individuals we can take the personal responsibility to do something about. These factors are related to more than 50 serious medical conditions such as cardiovascular disease, diabetes and certain cancers. Expensive to treat diseases that are in great part preventable. There's lots of blame to go around as to why we pay so much for health care--and what we get in return--but there are solutions. Our program is having a huge impact in rural and community hospitals among their employees here in Texas. You can "purchase good health" as referred to in the article, in many cases by the choices you make.

[j-whitman]

Lonestar,,, It sounds like you're a health care professional, wellness programs are great -- But, it still doesn't address the problems our hospitles are facing,,,, Bush doesn't do anything about illegal immigrants flooding our hospitals, & driving them into bankrupcy,

[j-whitman]

Lonestar,,, Wellness programs also doesn't addess the rising cost of health care nor the millions of Americans struggling to put food on thier tables or senior citizens who now have to provide many of thier own services due to Bush cuts or management.

[j-whitman]

Lonestar,,, Over the next 10 years it will take each person $76,000 per year to cover health care costs.

[cdegolier]

"Do apricot kernels cure cancer? NO. Nothing C U R E S cancer. After all we have already argued that at any point of time we all have some cancer cells in our body, so the best prognosis is the fully effective control of a life threatening cancer. When that control can be exerted for twenty, thirty or fifty years a %u2018cure' becomes largely irrelevant." Quote from Dr. Tait's Book I'm Alive and On Fire

I have known several people who had tried the holistic treatments for cancer, some of them did not seek actual medical treatment until it was too late and another allowed his tumor to grow so large that by treating it holistically that by the time he had it medically removed he lost most of his lower jaw and part of his neck.

No thanks, I'll take my chances with an actuall doctor whom most of you believe do not want to treat cancer but just take your money and let you die. Get a Clue

[cdegolier]

California's Medi-Cal program spends $400 million out of a $1 billion dollar program on illegal immigrants, most of whom are pregnant. Getting rid of the illegals are a start to solving alot of our nations problems from health care costs, insurance costs, over crowded prisons and high unemployment but to name a few.

And of course at this forum illegals immigrants are caused by the Bush administration, just wait and see if anything will get done by the democrats, what was clintons proposal again?

[j-whitman]

Cdegller,, True, that problems always been there... Now it's in our faces on a much larger scale, & the governments changes has only made matters much worse... Just the oppisite, they push for more privatization & more lack of regulation... Then ignore the problems still.

[hawksprings]

Using the free enterprise system to health care would bring the cost down.
- Require docs, clinics and hosptitals to post their prices.
- Forbid insurance companies from paying the providers, instead they must reimburse the patient directly.
- Figure out a way to get some of the government out of health care, docs and hospitals spend a lot of time of forms for the various gov agencies.

Those three things would drive prices down.