Health and Economy: January 10, 2014
While health care cost growth has slowed in the years following the recession, the United States spent roughly 16.4 percent of national gross domestic product (GDP) on health care in 2011, and the Congressional Budget Office has estimated that federal health care spending will increase to 8 percent of federal revenue by 2038. The United States spends more per capita on health care than any other country in the world and the gap widens year after year.
Appropriately, health care market reforms have long been a priority on Capitol Hill, resulting in legislation such as the Balanced Budget Act of 1997, the Medicare Prescription Drug, Improvement, and Modernization Act (2003), and most recently the Patient Protection and Affordable Care Act (2010). These legislative initiatives and other policy efforts have largely been focused on reducing the budgetary burden of public health programs to the federal government and expanding coverage in terms of benefits and percent of the US population that is insured. The Center for Health and Economy (H&E) uses a detailed micro-simulation model to analyze the ten-year outlook of the insurance market for US residents under the age of 65, providing more robust metrics that can be used to inform policy decisions. This report details the H&E projections of the insurance market and the characterizing metrics. Read More