Healthcare bills on the rise as percentage of US Economy
Posted by Stephen Cline on February 3rd, 2010Given the backdrop of the worldwide financial crisis, the share of medical expenses in the overall US economy has risen by 5.7%. This was because American had to shell out more money for health services and drugs leading to less disposable income for other expenses. Healthcare now takes us 17.3% of the US GDP. The spending is up to as much as $2.5 trillion which is almost 1.1% higher than last year. This is a huge expansion of the health care’s share of the economy which does not speak too well for the health of the economy as such.
In the meanwhile the healthcare legislation that was supposed to be passed has been stalled by Congress and it is not sure of Congress will relent and allow any cost related changes at all. It is expected that the share of health in the national economy will continue to rise and the growth of this will outstrip the growth in the economy as such. In 2019, it is expected that the share of healthcare in the economy will become as high as 20% when it will reach almost $4.5 trillion. With any all round increase in spending n health being inevitable, it remains to be seen as to what could be the effect on personal health.