Federal healthcare spending is estimated to top $4 trillion by 2020, fueled by an increased number of Americans on Medicaid, the conservative website Heritage.org
A study released last week by the Centers for Medicare and Medicaid Services (CMS), titled “National Health Spending Projections Through 2020: Economic Recovery And Reform Drive Faster Spending Growth,” outlines the costs associated with Obamacare into the next decade.
The study says the program’s supposed aim at bending the “cost curve” is nothing more than an increase of the government’s share of spending in the healthcare sector.
As major provisions of Obamacare are implemented, coupled with a recovering economy in the years ahead, figures are estimated to rise considerably, increasing an average of 5.8 percent each year.
At that rate, spending on healthcare will equal $4.54 trillion by 2020, or nearly 20 percent of the Gross Domestic Product (GDP) — the market value of all goods and services produced within a country during a given period. In comparison, federal tax revenue for 2010 equaled 14.9 percent of GDP, while all combined federal spending totaled 23.8 percent of GDP.
With 25 million Americans predicted to be on Medicaid rolls in the coming years and federally funded healthcare exchanges, the federal government looks to expand exponentially into this sector — despite the fact that the original goal of the Medicaid program was to provide for the most vulnerable citizens.
Come 2020, estimated government healthcare spending will be about 49 percent of all health expenditures, with Medicare and Medicaid accounting for 20 percent each. This estimate would see federal spending on healthcare exceed private spending.
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