http://www.nytimes.com/2013/02/12/us/politics/sharp-slowdown-in-us-health-care-costs.html?ref=us&_r=0
This New York Times article outlines a curious trend which has been revealed in figures published last week: the cost of medical care in the US has been rising much more slowly than projected. As a result, projections for future government spending have decreased greatly; by 2020, the government is expecting to save hundreds of billions on Medicare and Medicaid.
Reasons for the decline in health costs are subject for debate. Many argue that the fall in price is the result of changes in the way that doctors deliver medicine; skeptics argue that the trend is only the result of a slow economy.
This could be promising news for a nation with an overwhelming government spending deficit. If medical costs continue decreasing, healthcare can become more widespread while the budget deficit remains under control. We can only hope that these low costs aren't just another side effect of our currently-slowed economy.
It is interesting that the government is going to be saving money on Medicare and Medicaid now. The timing is not good since the baby boomer generation is beginning to retire. With such a large population in the baby boomer generation I am surprised that the government is not focusing more money and attention on Medicare and Medicaid.
ReplyDeleteThe current major issues with Medicare & Medicaid are firstly that, those seeking to assure adequate funding for both Social Security and Medicare face the problem that, with the aging of the population, there will be fewer workers supporting each retiree. Another part to take into consideration are near-term costs, long-term savings and lastly the fees for the service that is being provided. The last time Medicare was tried to be fixed was in 1997 and that didn't turn out so well. Serious analysis in a less extreme economic climate is required, and I see that being the only real solution to the vital program.
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