Economics
Health Spending to Gobble Up More of U.S. Economy in Next Decade
A healthcare aide checks the vitals of a patient during a clinic event in Los Angeles, California.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Spending on health care will take up an increasing proportion of the U.S. economy over the next decade as the population ages and more people gain insurance coverage under Obamacare, a government report said.
Payments for hospitals, doctors, drugs and insurance will rise by about 5.8 percent a year through 2024, 1.1 percentage points faster than overall economic growth, actuaries at the Centers for Medicare and Medicaid Services said Tuesday in an annual study. Health spending will account for 19.6 percent of gross domestic product in 2024, up from 17.7 percent last year.