Health Care Will Cost $4 Trillion by 2017
Gov't Projects That Medical Expenses For An Aging Population Will Be 20% Of GDP
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The 6.7 percent annual increase in spending - nearly three times the rate of inflation - will be largely driven by higher prices and an increased demand for care, the Centers for Medicare and Medicaid Services said Monday. Other factors in the mix include a growing and aging population. The first wave of baby boomers become eligible for Medicare beginning in 2011.
With the aging population, the federal government will be picking up the tab for a growing share of the nation's medical expenses. Overall, federal and state governments accounted for about 46 percent of health expenditures in 2006. That percentage will increase to 49 percent over the next decade.
"Health is projected to consume an expanding share of the economy, which means that policymakers, insurers and the public will face increasingly difficult decisions about the way health care is delivered and paid for," CMS economists said.
Overall health care spending in 2017 was estimated to increase to $4.3 trillion. That would be about 20 percent of U.S. gross domestic product, or GDP, the total monetary value of all finished goods and services produced in a country.
In 2006, people and the government spent $2.1 trillion on health care, an average of $7,026 a person. In 2017, health spending will cost an estimated $13,101 a person.
In his budget for next year, President Bush recommended slowing the yearly growth of Medicare from about 7 percent to about 5 percent. The slowdown would occur primarily by freezing reimbursement rates for the next three years to scores of health care providers, such as hospitals, nursing homes and home health centers. Bush also proposed requiring wealthier Medicare beneficiaries to pay higher monthly premiums when participating in Medicare's prescription drug coverage plan.
We have an approaching crisis in this country unless we change the way we do business.
Kerry Weems, Acting Administrator,Centers for Medicare and Medicaid Services
"Medicare, on its current course, is not sustainable," Leavitt testified.
Democratic lawmakers also have proposed ways to slow health spending, primarily by trimming payments to private insurers who oversee health coverage for nearly 9 million Medicare beneficiaries. A growing number of the nation's elderly and disabled are electing to get health coverage through private plans that contract with the federal government and government economists predicted that trend will continue. Now, about one in six beneficiaries get their health benefits through a private plan. By 2017, more than one in four beneficiaries will get their coverage that way, Medicare officials said.
Health experts tell Congress that Medicare pays much more for each beneficiary who opts for a private plan than it would if they stayed in the traditional Medicare program, which reimburses providers at a set fee for a particular service. That difference increases the burden on taxpayers as well as beneficiaries, because participants pay higher monthly Medicare premiums.
The government economists say it's hardly a new trend that the health care sector will grow more quickly than the overall economy. Over the past 30 years, health spending has exceeded growth in the gross domestic product by about 2.7 percentage points each year. Over the coming decade, that difference is expected to narrow slightly. Still, the continued gap is worrisome, said the agency's acting administrator, Kerry Weems. He said consumers, particularly businesses, need more information about the quality and cost of care.
"We have an approaching crisis in this country unless we change the way we do business," Weems said.
Within the health sector, economists project that spending on hospital care will increase at rate of 6.9 percent a year over the coming decade, spending on physician services will rise 5.9 percent annually, and spending on nursing homes will grow 5.2 percent a year.
The economists' report will be published online by the journal Health Affairs.
© MMVIII, The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.



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See all 59 Commentsmost of this money goes right into the pockets of people like haliburton, republiCon contractor''s
not the troops or the seniors on medicare
Federal tax rates for 2008 are:
15% on the first $37,885 of taxable income, +
22% on the next $37,884 of taxable income (on the portion of taxable income between $37,885 and $75,769),
26% on the next $47,415 of taxable income (on the portion of taxable income between $75,769 and $123,184),
29% of taxable income over $123,184.
A single Canadian earning a taxable income of C$60,000 woould pay C$10,548.05, a 17.6% rate. While a single American earning a taxable income of US$60,000 would pay $11,430 (2007 IRS tax tables).
In both cases neither Canadian provincial taxes nor US state taxes have not been included.I have yet to meet a Canadian complaining about his tax rates, and neither have I ever heard any of them mention a 60% tax rate. However Michael Moore''s "Sicko" provided an ample number of Canadians who have complained about the cost of American health care.
The following is a typical American health care nightmare that occurred in California recently.
(AP) A woman who had her medical coverage canceled as she was undergoing treatment for breast cancer has been awarded more than $9 million in a case against one of California''s largest health insurers.
Patsy Bates, 52, a hairdresser from Lakewood, had been left with more than $129,000 in unpaid medical bills when Health Net Inc. canceled her policy in 2004.
If you had read more carefully, I didn''t say eat LESS animals, I said don''t eat ANY animals. Also, this idiot, as you referred to me, is not Democrat as you said, but an Independent. But I''ll bet I can guess more accurately than you and say you''re Republican.
GWB had a solution for the aging population when he tried cutting the production of flu vaccine.
The World Health Organization''s ranking
of the world''s health systems.
1 France
2 Italy
3 San Marino
4 Andorra
5 Malta
6 Singapore
7 Spain
8 Oman
9 Austria
10 Japan
11 Norway
12 Portugal
13 Monaco
14 Greece
15 Iceland
16 Luxembourg
17 Netherlands
18 United Kingdom
19 Ireland
20 Switzerland
21 Belgium
22 Colombia
23 Sweden
24 Cyprus
25 Germany
26 Saudi Arabia
27 United Arab Emirates
28 Israel
29 Morocco
30 Canada
31 Finland
32 Australia
33 Chile
34 Denmark
35 Dominica
36 Costa Rica
37 United States of America
38 Slovenia
39 Cuba
Please note we barely outrank Cuba.
of the world''''s health systems.
1 France
Strange, I just had an aquaintance return from France where his wife awoke with a serious breathing problem. The first responder refused to assist them because they didn''t speak french. When they finally did reach the hospital they had to wait approx two hours to see a Dr. who gave her Benadril and told them to "walk" six blocks to a taxi stand (to return to their hotel) as the hospital refused to call them a cab. Yup, france has great healthcare, England too where you can wait up to two hours in a ambulance before admittance because the ER is over their "quota" of patients. Socialized medicine is great, that''s why Cleveland is the "hip replacement" capitol of Canada, if you can afford it. For all those who want to want to blame President
Bush, the Republicans, the insurance companies, etc, etc. You better stop drinking the liberal kool-aid and take a real look around. Government run healthcare is NOT the way to go. To those of you who want to discuss the problem in a rational manner, I wish you the best because the lib crybabys are just about to destroy the most advcanced medical system in the word.
Does anyone think the stated necessary cuts will start with the congress and senate health care plans? Will D*ick Cheney pay for his own coverage since he clearly can afford it? Nope. They''ll all say, "let them eat cake".
Mutmee, nice use of facts to drive your point home but you''re facing 25 years of learned ignorance perpetuated by the Heritage foundation and the CATO institute.
We pay twice what any other nation pays, yet we rank 23rd in quality of care and have a third world infant death rate.
Posted by jmagarotz
You people always seem to have a convenient "acquaintance" that can vouch for the CATO institute and reaffirm the dangers of socialized health care. Of course, the well documented failures in the more costly, private health care system are summarily dismissed.
You''ve been had on the health study, it is a politically motivated report It is a garbage report much like the Iraq death toll and Lancet report.
Posted by singingrick at 09:15 AM : Feb 26, 2008
Do you have any first hand experience in any of these other coutries?
Go live in one of them, the UK, for several years. A lot of the treatments which cost money in the US you can''t even get in these other countries. New UK laws say you can''t have someone in an ER ward for more than 4 hours without treatment, so they park the amubulances with the patient in it outside the hospital until they can fit into the 4 hour window. A patient can sit their all day, meanwhile the ambulance cannot go and pick anyone else up.
You''ve been had on this one.
omega39
It has nothing to do with CATO. I said "acquaintance" And he will be writing his hometown paper in Arizona with the story, if they print it that is.
Since you called me a liar I must ask, Why do you insist on destroying our medical system? Are you secretly working for an unfriendly foreign government or maybe you like to see people suffer, or is it you would rather "hate" instead of enter a rational discussion with ligitimate ideas to fix the problem? Which is it?
Posted by killtheliars at 09:26 AM : Feb 26, 2008
You want fake Chinese drugs or watered down Mexican drugs. Most all of the drugs available in Canada are made in the US. They buy on bulk contracts from the US.
"I swear to fulfill, to the best of my ability and judgment, this covenant:
I will respect the hard-won scientific gains of those physicians in whose steps I walk, and gladly share such knowledge as is mine with those who are to follow.
I will apply, for the benefit of the sick, all measures [that] are required, avoiding those twin traps of overtreatment and therapeutic nihilism.
I will remember that there is art to medicine as well as science, and that warmth, sympathy, and understanding may outweigh the surgeon''s knife or the chemist''s drug.
I will take every dollar the you have because my right to be rich is greater than your rights for good health care."
Posted by Oscarez at 09:38 AM : Feb 26, 2008
You forgot one, "I will kill the child in the womb at the tax payers expense"
Even if the drugs from Canada are made in the US, like you say they are purchased cheaper and then sold cheaper to the consumer.
As for chinese drugs US pharmacutical companies purchase drugs from china all the time and then market them like they are an American made product, so what''s the difference?
Posted by jowand at 09:40 AM : Feb 26, 2008
+ report abuse
Now folks this is a NAZI plain and simple. Notice how this bootlicker spends line after line TELLING you what the other side wants and thinks. He doesn''t trust YOU to decide for yourself. What he wants goes all the way back to the third Reich. He wants to make someone who does have a solution out to be evil or out of touch. Of course we are NOT discussing a Woman''s LEGAL right to an Abortion. But that''s his hate target, throw the discussion into an area where HE feels confrontable. The the LIE about Social Security. Social Security has problems BECAUSE the Borrow and Spend losers in HIS fascist party have raided the fund and spent all the money on Tax Cuts for the rich. Does this bother this loser? NOPE. Does it bother him that this nation pays out nearly TWICE what the workers and citizens of Canada does. NOPE he doesn''t want to discuss those issues. AREN''T you tired of this? We''ve heard this same tired old trash now for over 30 years and what have THEY done to fix the problem? Has the number of UNINSURED gone down under fascist rule even ONCE? Now the way I see it you can continue to listen to the lies and half truths of these freaks or you can vote for the other party. YOU know they aren''t going to do ONE THING, not one, to solve the problem. THAT''s a fact no one can get around. Sieg Heil Bush
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Posted by omega39 at 09:18 AM : Feb 26, 2008
+ report abuse
LOL Yes and they NEVER address the LIE we have been told by these same people over and over. EVERY election they tell us they will make Health Care MORE affordable and EVERY time it has turned out to be a LIE. Do they address that fact?
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Posted by jmagarotz at 09:37 AM : Feb 26, 2008
+ report abuse
He''s right, you people ALWAYS have an aquaintence or something to divert attention from the WORST and sparky it is the WORST health care system in the Free World. We spend, by far, much more money caring for far less citizens than any nation in the G-7. Have YOU been to a big city ER lately... I doubt seriously you will come out of that experience saying we have the best. Sieg Heil Bush
Posted by jmagarotz
Wow jmagarotz, you accuse me of wanting to destroy our medical system, working for an unfriendly government, wanting to see people suffer, unabashed hate and then proclaim I don''t want a rational discussion. Nice. I happen to work for a very large multinational and directly work with people from the UK, France, Israel and Canada. All have single payer health insurance and when I ask for their thoughts on our system they pretty much laugh at it. The facts are clear and have been laid out numerous times;
1) the US spends more per capita on health insurance than any other country (almost twice)
2) Our infant mortality rates and life expectancy are relatively poor compared to countries spending half as much
3) we have 43.6 million (as of 2006) uninsured that are using the hospital emergency rooms as primary care physicians, this ultimately cost the taxpayer anyway.
4) The costs of the "for profit" model we employee is subject to outside influences. For instance, the double digit increases in health premiums in the early part of the decade were a reflection of insurance companies trying to recoup their stock market losses after the dot.com bust.
5) employer sponsored health care puts the US at a disadvantage when competing with countries that have single payer health care.
That should have been 3.8 Million with Sub STATNDARD coverage. Sorry.
Wow - those health care boyz are just like the oil boyz - the higher the demand, the more they charge - all in the name of profit.
Someday somebody will write an article that lays out health care costs in a nice little pie chart and shows - among the other overhead - how big a piece of the pie liability insurance companies and lawyers are getting.
The Human Development Index (HDI) is the normalized measure of life expectancy, literacy, education, standard of living, and GDP per capita for countries worldwide. 1 %u25B2 (1) Iceland %u25B2 0.968
2 %u25BC (1) Norway %u25B2 0.968
3 %u25AC (0) Australia %u25B2 0.962
4 %u25B2 (2) Canada %u25B2 0.961
5 %u25BC (1) Ireland %u25B2 0.959
6 %u25BC (1) Sweden %u25B2 0.956
7 %u25B2 (2) Switzerland %u25B2 0.955
8 %u25BC (1) Japan %u25B2 0.953
9 %u25B2 (1) Netherlands %u25B2 0.953
10 %u25B2 (6) France %u25B2 0.952
11 %u25AC (0) Finland %u25B2 0.952
12 %u25BC (4) United States %u25B2 0.951
The downward arrow means the US dropped from 2004.
When viewed regionally in the Americas Canada is #1, followed by the US.
1 %u25AC (0) Canada %u25B2 0.961
2 %u25AC (0) United States %u25B2 0.951
3 %u25AC (0) Barbados %u25B2 0.892
4 %u25AC (0) Argentina %u25B2 0.869
5 %u25AC (0) Chile %u25B2 0.867
6 %u25AC (0) Uruguay %u25B2 0.852
7 %u25AC (0) Costa Rica %u25B2 0.846
8 %u25B2 (2) Bahamas %u25B2 0.845
9 %u25BC (1) Cuba %u25B2 0.838
10 %u25B2 (1) Mexico
The above 10 countries are the 10 highest HDI''s, while there are 10 lowest HDI''s. On a global basis Cuba is 51 and Brazil 70, and Venezuala 74.
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Posted by easeup at 10:33 AM : Feb 26, 2008
+ report abuse
Take off the swastika stupid and READ. The Figures show and show clearly that the number of people without health care went up and went up DRAMATICALLY under that piece of trash YOU call a President. HE made fun of Gore and Democrats who insisted we needed to take action to stop this process. HE like all the Nazi''''s SAID they were going to make in MORE affordable. YOu don''''t believe it, search the debates. The question I have for you Nazi''''s is why do YOU keep buying the same tired old lies and trashing EVERY democrat that proposes a REAL solution, including Hillary? We have the WORST system in the civilized world for a reason... when you fascist took over we had one of the best...it''''s all there in the records. Search out how many american''''s were without medical care in 1980 IF you can keep the swastika off long enough. Seig Heil Bush
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Posted by MCVet at 12:12 PM : Feb 26, 2008
or you can go out in world and succeed on your own and not rely on government for everything like mcvet and the other libs on here do
She was given an overdose of morphine (2 large IV''s) we were told it was to make her more comfortable after they took her off life support.
I realize now she would have recovered from the malpractice that caused her problem but they killed her to limit their liability.
It is profit, monopolies, corruption, price fixing greed and racism that makes our medical system so dangerous and expensive. But then look who controls it. About 70% of doctors are Jews and I have been abused myself by these SOB''s while in the hospital.
Single payer health care NOW! Screw the zionist insurance companies.
Posted by jwind11 at 12:48 PM : Feb 26, 2008
==============================================
This moron is a paid shill and is here every day. Now who do you think pays his dependent self to do that? My tax dollars?
Posted by random_radar at 05:43 PM : Feb 26, 2008
bet they dont
Posted by incog-nito at 06:14 PM : Feb 26, 2008
you whiny liberals on here arent going to change a thing. you failed at succeeding in life, how can you change anything in this country? coming on here and blaming bush for your failures in life isnt going to change a thing....sorry for the reality check
Posted by jwind11
How do you measure success?
I cannot wait until The Great Baby-Boomer Die-Off begins. It can''t start soon enough, as far as I''m concerned.
Doesn''t it ever embarass you all that you''re such a drain on your nation and your planet? Don''t you have any pride?
Posted by maxify55
You are the epitome of the right wing. You fail to see it''s just not all about you. You and the way you like it doesn''t define america. Get over yourself. If you don''t like civilization, join the uni-bomber and live in the mountains. Other right wing crack pots who can''t cope have been doing this in Wyoming, Idaho and Montana for years. Of course, they are finding the elite whether right wing or not are putting pressure on their wild lands by privatizing huge tracts of land for mega summer estates. But it''s all good, it''s america.
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