CBO projects federal healthcare spending will reach 6.2% of GDP by 2025

Federal spending on Medicare, Medicaid, the Children’s Health Insurance Program and health insurance exchange subsides will rise to 6.2 percent of the country’s gross domestic product in 2025, up from 5.2 percent this year, according to budget projections from the Congressional Budget Office.

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Outlays for Medicare, Medicaid, CHIP and insurance subsidies are expected to be $110 billion this year, a 12 percent increase over 2014, according to the CBO.

Outlays for Medicare will remain near 3 percent of GDP through 2018 and then increase each year through 2023, when they will likely total 3.7 percent.

Spending on subsidies for health insurance purchased through exchanges will increase from 0.2 percent of GDP in 2015 to 0.4 percent in 2017, where the CBO expects it to remain it to remain through 2025.

Federal outlays for Medicaid are stable relative to GDP for the next 10 years, totaling about 2 percent in each year.

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