US healthcare spending to double by 2017

US health-care spending which was $2.2 trillion in 2007 is predicted to grow annually by about 6.7% for the next decade. GDP by contrast is expected to rise by 4.7% annually, while inflation is expected to increase by 2.4%. The US government’s Centers for Medicare and Medicaid Services predicts that healthcare spending will account for 19.5% of the US gross domestic product by 2017, up from 16.3% in 2007.

The National Health Expenditure Accounts Projections Team forecasts that Medicaid will increase at around 7.9% annually, before reaching $717 billion in 2017, accounting for up to 17% of US healthcare expenditure. By 2017, the Medicare bill – $427 billion in 2007 – is predicted to reach $884 billion, making up more than 20% of all US healthcare spending, while Medicaid is expected to register higher rate than overall healthcare spending.

But growth in private healthcare spending is predicted to decline to 5.9% more per year by 2017, after reaching a high mark of 6.6% in 2009. The drugs bill is also expected to rise to $516 billion by 2017. The revised treatment guidelines are expected to create greater demand in some therapeutic classes (such as cholesterol and high blood pressure).