Healthcare Spending to Rise $331 Billion Over Next Decade

Healthcare spending to increase as reform law goes into effect.  Healthcare expenditures are likely to increase by $311 billion over the next 10 years as the reform law is implemented and more people are covered, according to the Department of Health and Human Services (HHS). HHS actuaries report that expanded coverage will lead to increased utilization of healthcare services.  That is $77 billion higher than a previous assessment of the reform bill approved by the Senate in December, when it was estimated that spending would climb by $234 billion over the next 10 years.

“Although several provisions would help to reduce healthcare cost growth, their impact would be more than offset through 2019 by the higher health expenditures resulting from the coverage expansions,” according to a report released by the Center for Medicare and Medicaid Services (CMS).  The Office of the Actuary report estimates that the ultimate impact of Medicare provisos in the legislation are expected to save $575 billion from this year through 2019.  The lion’s share of those savings will result from reductions to physician and hospital inflationary payment updates.

Republicans quickly touted the report.  According to Representative Dave Camp, (R-MI), a member of the House Ways and Means Committee, “This is a bad law and, according to this analysis, seniors have the most to be concerned about when it comes to the future of their healthcare.”

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