Health Care Spending

a new report from Health Affairs online journal projects that health care spending is increasing. Health spending is expected to consistently be greater than gross domestic product (GDP) over the next 10 years, accounting for 20 percent of GDP by 2015. Health care spending is anticipated to rise at about 7.2 per year on average while the US economy is expected to raise an average of 5.1 percent.

With an aging population, including the huge numbers of baby boomers who will soon be retiring and eligible for Medicare, spending for Medicare is expected to double over the next 10 years. The greatest spending growth is expected to be in hospital costs and nursing homes. Drug prices are not expected to fuel the increases as many drugs lose brand protection and generic drugs drive prices down.

• Medicare Plan D
• Save Money With Generic Drugs
• Medicare 2006