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CBO Projects Health Care Spending Growth to Slow

Created on July 7, 2016

CBO Projects Health Care Spending Growth to Slow


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Read the original report, "Causes of the Federal Government’s Unsustainable Spending," by Paul Winfree.

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The Congressional Budget Office assumes that per capita growth of federal health care programs will regress to GDP growth for Medicaid and GDP growth plus 1 percent for Medicare. The projected date of decline, however, is continually being adjusted to occur further in the future.

Note: Private health insurance premiums affect premium subsidies, the tax exclusion for employer-sponsored health insurance, and certain taxes. Source: Congressional Budget Office, “The Long-Term Budget Outlook,” https://www.cbo.gov/publication/50250 (accessed May 19, 2016).

CHART 3 • BG 3133

Tags: government-spending, CBO, unsustainable