U.S. Health Care Costs Reach Record Highs

July 14--WASHINGTON -- The nation's health care tab this year is expected to surpass $10,000 per person for the first time, the government said yesterday.

The new peak means the Obama administration will pass the problem on to its successor.

The report from number-crunchers at the Department of Health and Human Ser­vices projects that health care spending will grow at a faster rate than the national econ­omy over the coming decade.

That squeezes the ability of federal and state governments, not to mention employers and average citizens, to pay. Growth is projected to average 5.8 percent from 2015 to 2025, below the pace before­ the 2007-2009 economic recession, but faster­ than in recent years.

National health expenditures will hit $3.35 trillion this year, which works out to $10,345 for every man, woman and child. The annual increase­ of 4.8 percent for 2016 is lower than the forecast for the rest of the decade.

A stronger economy, faster­ growth in medical prices and an aging population are driving the trend. Medicare and Medicaid are expected to grow more rapidly than private insurance as the baby-boom generation ages. By 2025, government at all levels will account for nearly half of health care spending, 47 percent. The report also projects that the share of Americans with health insurance will remain above 90 percent, assuming that President Barack Obama's law survives continued Repub­lican attacks.

The analysis serves as a real­ity check for the major political parties as they prepare for their presidential conventions.

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