Healthcare expenditures continue to rise

By 2020, healthcare spending will catapult to $4.6 trillion dollars as projected in a new report from federal actuaries. It predicts that from 2010-2020 (the projection period), average health spending growth (5.8 percent) will outpace average annual growth (4.7 percent) in the economy.

As boomers become eligible, annual Medicare spending growth is anticipated. In 2014, the Affordable Care Act’s (ACA) eligibility expansions, according to the report, will increase Medicaid enrollment and expenditures. By 2020, it is expected that Medicaid will pay for about 20 percent of all health expenditures.

Health Insurance Exchanges (government health insurance), which are part of the ACA, are predicted to enroll 13.9 million people in its first year, which translates to a 9.4 percent growth in private health insurance spending.

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