Government says health costs to keep growing faster than economy
Annual projections from number crunchers at the
Spending is projected to rise by an average of 5.5 percent annually through 2026, or about 1 percentage point faster than economic growth.
Prescription drugs account for the fastest increase, 6.3 percent a year on average, due to the high cost of advanced medications.
Although
Medicare spending will increase as more baby boomers join the program. Costs per patient are also expected to rise, partly reflecting an increase in the use of medical services.
The nation's health care tab -- estimated to reach nearly
That would average out to more than
Health care would represent nearly 20 percent of the economy in 2026.
When health care costs grow faster than the overall economy, it makes it harder for government to pay for programs like Medicare and Medicaid, and for employers to keep financing medical coverage for workers and their families.
Still, experts aren't predicting a return to 7 percent yearly growth seen before the 2007-09 "Great Recession."
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