Write a paragraph about the total costs of health care in th

Write a paragraph about the total costs of health care in the United States and the cost trend over the last 50-60 years. Include the major reasons why you think health care costs have escalated so much during this time period.

Solution

ANSWER: In 2017, the US spent nearly 18% of its gross domestic product on health care, makes health care one of the country\'s largest industries. In comparison, health care cost $27.2 billion in 1960, just 5 percent of GDP. It translates to an annual health care cost of $10,724 per person in 2017 versus just $146 per person in 1960. Health care cost has driven faster than the annual income. CMS forecasted that healthcare spending will on average increase 5.5 percent annually from 2017 to 2026 and will comprise 19.7 percent of the economy of U.S. in 2026, increasing from 17.9 percent in 2016. By 2026, we can expect that health spending to reach $5.7 trillion. The chief factors influencing that contributed to rising health care spending includes technological innovation, increasing competition, aging of the population, restrained public funding, increase in real income, increase in chronic illnesses, and a deceleration in economy-wide inflation