How to cut health care costs by 50%
Health care spending in the United States has surged since President Donald Trump took office, rising nearly 50% since his inauguration, according to a new report from the Center for Medicare and Medicaid Services.
It’s a sign of the nation’s escalating health care debt that health care spending has outpaced growth in GDP in the past decade, the CMS said.
The report comes amid heightened scrutiny of the federal government’s ability to handle its $3.1 trillion annual health care obligations.
A recent report from a nonprofit group called the American Medical Association found that more than half of Americans will be covered by private insurance by 2026.
In addition, Medicare is the nation of choice for about half of seniors, the report found.
CMS Chief Economist Robert Litan said the report was a “good starting point” to consider when looking at ways to cut the costs of care in the country.
Litan told reporters the report shows the government is doing a good job of spending money and keeping spending under control.
The bureau has not yet released a detailed breakdown of how the health care cost increases were determined.
While the report did not give a breakdown of the costs incurred by individuals or families, it said that as of January, “over $100 billion in health care expenses were incurred by the public, private, and for-profit sectors.”
The report found that about $9.9 trillion of health care expenditures in 2017 were paid for by private insurers, and about $6.9 billion of health costs were paid by the federal, state, and local governments.
“The report shows that the government continues to spend money on the programs it needs to sustain the nation while cutting back on programs that the private sector needs to maintain,” Litan told ABC News.
More from ABC News:The CMS also released an analysis of Medicare’s costs.
It said the cost of health services to Medicare beneficiaries grew at an annual rate of 0.9% in the third quarter of fiscal 2018, compared to a 3.1% increase in the fourth quarter.
The average Medicare bill was $1,000 more than the average annual income, according the CMT.