HEALTHCARE SPENDING COULD DOUBLE BY 2016, CMS REPORT SAYS

Healthcare spending will continue to grow more quickly than the economy over the next decade as more Americans join government-provided healthcare programs, according to a report from economists at the Centers for Medicare & Medicaid Services (CMS).

Healthcare spending in 2016 could reach $4.1 trillion, representing 20 cents out of every dollar spent, according to the report, which was published in Health Affairs. In 2006, healthcare spending was $2.1 trillion, the economists estimated.

Currently, the growth in national healthcare spending is slowing down, the report said. In 2007, healthcare spending growth will decrease from 6.8 percent to 6.6 percent, the report estimated.

However, the trend will reverse and spending growth will reach 7.8 percent by 2009 because of accelerating medical price inflation and increases in pharmaceutical use. By 2016, health spending could be 19.6 percent of the gross domestic product, the report said.

The current slowed growth is partially due to changes in Medicare and Medicaid, the article said, adding that Americans are relying more on government-provided healthcare systems and leaving behind traditional insurance sources.

The report predicted more changes to Medicare and Medicaid, especially as prescription drug coverage for dual eligibles switches to Medicare Part D. The change has altered the distribution of drug spending among payers, but the net effect on spending will be small, according to the report.

( http://www.fdanews.com/did/6_38/ )