American Health Care Since 1994: The Unacceptable Status Quo

American Health Care Since 1994: The Unacceptable Status Quo:

"Higher medical costs are also taking a toll on America's fiscal health. As the CBO has warned, 'the rate at which health care spending grows relative to the economy is the most important determinant of the country's long-term fiscal balance.' Federal health care expenditures, including Medicare and Medicaid, have risen to over $800 billion, or $2,650 per person, in 2008, from $300 billion, or $1,600 per person, in 1994 (in constant 2008 dollars). The burden on states has increased as well, to $300 billion in health care costs in 2008, from $190 billion in 1994 (including each state's share of the Medicaid program). These trends are projected to speed up, with per-person federal expenditure nearing $6,000 by 2017 and state and local expenditures projected to increase to $2,000 per-person (in 2008 dollars) over the same period.

"While some of this increase is attributable to population growth, an aging population, and changes to the policy structures of Medicare and Medicaid (including an expansion of the State Children's Health Insurance Program), much of it comes from the underlying inefficiencies and excess costs of the American health care system."

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