1 in 5 US dollars to be spent on health care

[Guest guest]

1 in 5 US dollars to be spent on health care: study

WASHINGTON (Reuters) - Health-care spending is outpacing the growth

of the American economy and will consume 20 percent of U.S. gross

domestic product by 2015, the U.S. Centers for Medicare and Medicaid

Services (CMS) said on Wednesday.

By comparison, health-care spending accounted for about 16 percent of

U.S. GDP in 2004, the latest year for which data are available,

according to a study by CMS economists published in the journal

Health Affairs.

National health care spending will grow by an average 7.2 percent

annually over the coming decade, the study said. That would be slower

than in recent years but still 2.1 percent faster than GDP growth, it

said.

Recent annual growth in American health care spending peaked at 9.1

percent in 2002.

U.S. spending on prescription drugs was forecast to soar to $446

billion in 2015, up from $188 billion in 2004, according to the

study, which is issued annually. However, the average annual spending

rise for prescription drugs over the coming decade was seen at 8.2

percent, lower than the projection made in last year's report due to

the government's new Medicare Part D prescription drug program.

The Medicare Part D prescription drug benefit began last month as a

way to help as many as 42 million elderly and disabled Americans pay

drug costs.

" The prescription drug plans were able to negotiate discounts and

rebates that came in larger than we thought, and this has helped

mitigate what drug spending would have been, " said Poisal,

deputy director of the CMS' health statistics group. " It doesn't mean

drug spending won't continue to grow, but it has helped to temper

that growth. "

The Pharmaceutical Care Management Association, a trade group

representing pharmacy benefit managers, said the report

showed " deeper-than-expected discounts " in both Medicare Part D drugs

and overall prescription drugs.

Pharmacy benefit managers administer mail-order and other kinds of

prescription drug plans for health insurance programs.

The study also forecast the following for specific areas of health

care:

* Medicare spending was forecast to spike by 25 percent in 2006 due

to the new prescription drug benefit, then average 7.5 percent growth

between 2008 and 2015.

* Medicaid spending was forecast to average 8.6 percent growth

annually from 2008 through 2015 when spending reaches $670 billion.

Medicaid is a joint federal-state program for poor Americans.

* Private health insurance premiums slowed for a third consecutive

year and grew by 6.8 percent in 2005. However, an upturn in the

underwriting cycle in 2007 means that premiums will grow by a

forecast 8.3 percent in 2009.

* Out-of-pocket spending was predicted to decline by 1 percent in

2006 after remaining stable at 5.6 percent growth in 2005. Consumers

are expected to spend $421 billion out of pocket on health care by

2015, up from $248.8 billion in 2005.

The CMS report, " Health Spending Projections through 2015, " was

published on the Internet at

www.cms.hhs.gov/NationalHealthExpendData/03_NationalHealthAccoun

tsProjected.asp .

http://news./s/nm/20060222/us_nm/economy_healthcare_dc_2

[Guest guest]

I think that part of the problem is that people rush to the doctor for every little thing and then expect every last drop of technology to be used for diagnosis and treatment, even things are are not necessary. Sad to say, many doctors go along with this in order to protect themselves from malpriactice suits. Lee <jackalope_lepus@...> wrote: 1 in 5 US dollars to be spent on health care: study WASHINGTON (Reuters) - Health-care spending is outpacing the growth of the American economy and will consume 20 percent of U.S. gross domestic product by 2015, the U.S. Centers for Medicare and Medicaid Services (CMS) said on Wednesday. By comparison, health-care spending accounted for about 16 percent of U.S. GDP in 2004, the latest year for which data are available, according to a study

by CMS economists published in the journal Health Affairs.National health care spending will grow by an average 7.2 percent annually over the coming decade, the study said. That would be slower than in recent years but still 2.1 percent faster than GDP growth, it said.Recent annual growth in American health care spending peaked at 9.1 percent in 2002.U.S. spending on prescription drugs was forecast to soar to $446 billion in 2015, up from $188 billion in 2004, according to the study, which is issued annually. However, the average annual spending rise for prescription drugs over the coming decade was seen at 8.2 percent, lower than the projection made in last year's report due to the government's new Medicare Part D prescription drug program.The Medicare Part D prescription drug benefit began last month as a way to help as many as 42 million elderly and disabled Americans pay drug costs."The

prescription drug plans were able to negotiate discounts and rebates that came in larger than we thought, and this has helped mitigate what drug spending would have been," said Poisal, deputy director of the CMS' health statistics group. "It doesn't mean drug spending won't continue to grow, but it has helped to temper that growth."The Pharmaceutical Care Management Association, a trade group representing pharmacy benefit managers, said the report showed "deeper-than-expected discounts" in both Medicare Part D drugs and overall prescription drugs.Pharmacy benefit managers administer mail-order and other kinds of prescription drug plans for health insurance programs.The study also forecast the following for specific areas of health care:* Medicare spending was forecast to spike by 25 percent in 2006 due to the new prescription drug benefit, then average 7.5 percent growth between 2008 and

2015.* Medicaid spending was forecast to average 8.6 percent growth annually from 2008 through 2015 when spending reaches $670 billion. Medicaid is a joint federal-state program for poor Americans.* Private health insurance premiums slowed for a third consecutive year and grew by 6.8 percent in 2005. However, an upturn in the underwriting cycle in 2007 means that premiums will grow by a forecast 8.3 percent in 2009.* Out-of-pocket spending was predicted to decline by 1 percent in 2006 after remaining stable at 5.6 percent growth in 2005. Consumers are expected to spend $421 billion out of pocket on health care by 2015, up from $248.8 billion in 2005.The CMS report, "Health Spending Projections through 2015," was published on the Internet at www.cms.hhs.gov/NationalHealthExpendData/03_NationalHealthAccoun tsProjected.asp . http://news./s/nm/20060222/us_nm/economy_healthcare_dc_2 . Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind. -Dr.Seuss . It don't mean a thing if it ain't got that swing. - Duke Ellington . Never place a period where God has placed a comma. - Gracie