Projected spending on major health programs critically depends on excess health care cost growth.
June 15, 2012
SOURCE: Data from the Congressional Budget Office, The 2012 Long-Term Budget Outlook, June 2012. Compiled by PGPF.NOTE: Excess health care cost growth is the growth of health care cost per beneficiary (adjusted for demographic changes) above the growth of GDP per capita. Current policy baseline is represented by CBO's extended alternative fiscal scenario.
The growth of health care spending has a large influence on long term projections of the federal budget. In the past, the growth of health care costs have stemmed from a variety of factors, including the emergence, adoption and diffusion of new medical technologies and services; the growth of personal income; and, possibly, the expansion of health insurance coverage. Looking forward, CBO anticipates that health spending will continue to grow at a rate faster than the overall economy.
This chart appeared as part of PGPF's analysis of Congressional Budget Office's 2012 Long-Term Budget Outlook. To read the full report, click here.
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