$10,000 bucks. That’s a whole lot of money. It’s also what a new study claims will be the average cost of health care for every man, woman, and child in our country this year.
This year for the first time, spending on medical costs per person is set to exceed $10,000, a government analysis published Wednesday in the journal Health Affairs shows. This represents the total everyone is paying into the health care system, including patients, the government and private health insurance.
And projections show this total will only increase. By 2025, each person’s medical care in this country will cost roughly $16,000 a year.
Over the next 10 years (through 2025), health care spending is projected to grow at almost 6% per year. That’s a tick faster than in recent years and spending is expected to outpace overall economic and wage growth.
According to Fox News, “A stronger economy, faster growth in medical prices and an aging population are driving the trend. Medicare and Medicaid are expected to grow more rapidly than private insurance as the baby-boom generation ages. By 2025, government at all levels will account for nearly half of health care spending, 47 percent.”
Despite the rise, health care costs are growing slower than they were before the Great Recession (2007-2009) when the average growth of health spending was nearly 8% per year. The Washington Post pointed out another potential bright spot moving forward.
Prescription drug spending, which spiked in recent years due in part to the introduction of effective but expensive treatments for hepatitis C beginning in late 2013, was projected to return to more moderate growth — with an average annual growth rate of 6.7 percent for 2016 through 2025.
According to CNBC, “The Obama administration often has cited the ACA (Affordable Care Act) as a reason for the historic slowdown in health spending that has been seen on the heels of the Great Recession. But that view is not universally shared. Some health-care experts outside of the administration say it is not clear, at all, that the ACA has had a big impact on bending the cost curve.”
Share your thoughts on this new report and how you believe health care spending will impact Arizonans moving into the future. Your input and insight is a critical part of our long-term goal of one day making Arizona the Healthiest State in the Nation!