Monday, March 3, 2008

MEDICARE SPENDING TO SURGE

Driven by the aging of the baby-boom generation and rising costs of new drugs and medical technology, government spending on health care could nearly double by 2017:

> Health-care spending in the United States will hit $4.3 trillion by 2017, nearly double the 2007 amount; equating to nearly 20 percent of gross domestic product.

> In 2007, health-care spending accounted for 16.3 percent of GDP, but more of that cost is expected to shift to government agencies -- even as the federal government struggles to shrink huge deficits.

> Medicare spending alone is expected to grow to $844 billion in 2017, up from $427 billion in 2007.

[the costs of this sector are (and have been) out of control, because we've no cost pressure such as seen in every other industry where people spend their own money (vs. our employers - which is 'free' to too many). Government programs will only make the situation worse; we need tax deferred individual medical savings accounts - the longer we wait, the more harm will be done (one fifth of our GDP!?)]

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