Government Headed For Close To Half The Nation’s Health Tab

WASHINGTON - Even without a history-making health care remake to deliver "Medicare-for-all," government at all levels will be paying nearly half the nation's health care tab in less than 10 years, according to a federal report released Wednesday.

The government growth is driven by traditional Medicare, which is experiencing a surge in enrollment as aging baby boomers shift out of private coverage, according to the analysis from the Centers for Medicare and Medicaid Services, part of the U.S. Department of Health and Human Services.

Federal, state and local governments will be paying 47 percent of the nation's health care costs in 2027, up from 45 percent currently, the report said.

The report did not consider the potential impact of "Medicare-for-all" national health insurance plans from Democratic presidential candidate Bernie Sanders and other liberals. Nor did it delve into a financial rescue of traditional Medicare that could become a pressing political priority for all sides in just a few years. Medicare's trustees have said the program will be insolvent in seven years, when its giant trust fund for inpatient care won't be able to fully cover expected medical bills.

The report projected that U.S. health care spending will surpass $5.9 trillion in 2027, growing to represent more than 19 percent of the economy. Health care spending is expected to increase somewhat more rapidly than overall economic growth from 2018 to 2027, underscoring an ingrained affordability problem for government, employers and U.S. households.