Funding The Rising Cost Of U.s. Health Care

Funding The Rising Cost Of U.S. Health Care Name Institution FUNDING THE RISING COST OF U.S. HEALTH CARE The US health care sector takes up more than a sixth of the economy. Currently, it accounts for 18 of the GDP. By 2021, its estimated that health care will be nearly 20 of the GDP and 34 by 2040. According to the CDC, In 2007, the national health care expenditures in the United States totaled 2.2 trillion or 16 of its gross domestic product, a 14 increase from 2000. This represents an average of more than 7,400 per person. Measured up to other developed countries, the US is the biggest spender in the health care sector. The growing cost of health care is not sustainable. The growth in the cost of health care has negative effects on the economy in my opinion. According to ASPE (2005), this rise in healthcare costs affect employment, GDP and inflation. The increase in health care costs might also force the government to raise taxes, increase borrowing or reduce investments in other important sectors such as education and infrastructure, stifling economic growth and affecting both businesses and households. Employment and the rates of investment in the