FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 17 February 2016

The Current State of the Healthcare Sector and Proposed Future Legislation

Written by

In 2014 the United States spent 17.1% of its GDP on the healthcare sector, which totals to roughly $3 trillion. In per capita terms, this is about $9,523 per citizen. This is even more concerning when we are compared to other OECD countries, whose life expectancy, obesity rates, and essentially any other measurement of health is significantly better.

While legislation has been proposed to increase efficiency in this sector, such as removal of the fee-for-service model, evidence suggests costs may continue to increase in the near-term. Due to an aging demographic in our nation, paired with increasing projected healthcare costs, the deficit is expected to rise to 6% of GDP by 2040. This trend has been studied by the Congressional Budget Office, which also projects that the United States will see debt reach 100% of GDP by that time.

The Affordable Care Act has been a prominent factor in this projection, as the Center for Medicare and Medicaid services has projected that by 2022 this legislation will increase cumulative health spending by $621 billion. This will lead healthcare spending to grow to 19.9% of GDP in the same time period.

While these numbers are concerning, recently passed legislation is going to have a profound effect. The Medicare Access and CHIPS Reauthorization Act of 2015 (MACRA) will singularly transform the healthcare financial landscape. The goal of MACRA is to align payments to healthcare providers for improved value and better care. How this is implemented is as yet undefined but will be heavily influenced by the Center for Medicare and Medicaid Innovation (CMMI), which was established by Congress in 2010 to "test innovative payment and delivery system models that show important promise for maintaining or improving the quality of care in Medicare, Medicaid, and the Childrens Health Insurance Program, while slowing the rate of growth in program costs

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Contributors


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
Comments on Feyerabend’s ‘Against Method’, Part II
Comments on Feyerabend’s ‘Against Method’, Part III
News Blog
Rail Week Ending 15 October 2016 Paints A Negative Economic View
What Is The New Normal For U.S. Growth?
Affordable Care Act And Its Effect On Part-Time Employment
The Speed Of Filling Jobs Is Declining
First Working Eggs Made From Stem Cells Points To Fertility Breakthrough
Infographic Of The Day: Mega Machines
Online Platforms Double Down On TV Programming
A History Of Mars Missions
How Tesla Out Innovates Traditional Carmakers
Schiaparelli's Descent To Mars In Real Time
September 2016 Existing Home Sales Still Not Excellent
September 2016 Leading Economic Index Improves Indicating Moderate Growth Ahead.
October 2016 Philly Fed Manufacturing Survey Declines But Remains In Expansion.
Investing Blog
Options Early Assignment - Should You Worry?
The 401k Plan Manager 17 October 2016
Opinion Blog
Prop. 51 Versus A State-Owned Bank: How California Can Save $10 Billion On A $9 Billion Loan
Obama's Middle East Policy Has Been A Complete Failure - Or Has It?
Precious Metals Blog
How Will The Election Outcome Impact Precious Metals?
Live Markets
21Oct2016 Pre-Market Commentary: Wall Street Pointing To A Lower Opening Despite So So Corporate Earnings, Markets May Recover Be Late Afternoon
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved