MORE SPENDING FOR CARE

September 16, 2008
Michael Sheehan

Physician's Money Digest, July15 2003, Volume 10, Issue 13

The rise in health care costs isoutpacing the overall inflation rate,and that trend is likely to continue,according to a forecast from theCenters for Medicare & MedicaidServices (CMS; www.cms.hhs.gov).Over the next 10 years, spending onhealth care will go up by an averageannual rate of 7.3%, the CMS predicts.By 2012, health care spendingwill reach $3.1 trillion and represent17.7% of the nation's gross domesticproduct, up from the current 14.1%.Hospitals, which have acquired somebargaining clout vis-à-vis managedcare programs, are likely to get agood portion of the increased expenditures.Spending on doctor servicesis expected to grow by an averageannual rate of 6.8% over the next 10years, while the increase in spendingon prescription drugs is expected toaverage 11.1%.