Health Insurance - Can Spending Be Lowered?
President Obama’s economic advisers stated in a report released today that if the growth in health care spending can be lowered from 6% to 4.5% there would be huge benefits for the US economy such as creating as many as 500,000 new jobs and increasing income for the average family of 4 by $2,600 over the next 10 years. Cutting costs as well as covering the 46 million uninsured would improve the US budget and increase economic stability by approximately $100 billion a year.
But is this aggressive goal even feasible? Obama’s economists recognize that slowing the growth rate of health insurance spending by 1.5% would be incredibly challenging. But if the goal can be reached it would mean huge benefits for companies, households and the economy overall, and this is obviously much needed. Health care expenditures are about 18% of gross domestic product and is on a path to reach as much as 34% by 2040 if reform is not implemented. Obama recently met with industry leaders who are reaching to help find $2 trillion in health care savings over the next 10 years. It’s a top priority on Obama’s economic agenda and he finds reform to be critical.
