CBO releases healthcare spending outlook: 5 takeaways

Spending for the major government healthcare programs will rise by $55 billion, or about 6 percent, in 2016, and Medicare will account for more than half of that increase, according to budget projections from the Congressional Budget Office.

Here are five key takeaways from the CBO's recent budget and economic outlook.

1. The CBO estimates fiscal year 2016 will be the first time since 2009 the federal budget deficit will increase in relation to economic output. That increase is largely attributable to the aging population and rising healthcare costs per person, which significantly boost projected spending for Medicare and Social Security.

2. Outlays for the Medicare program are expected to increase by $30 billion, or 6 percent, this year, with growth largely driven by increased spending per person on prescription drugs.

3. Medicaid outlays are expected to increase by $15 billion, or 4 percent, this year. The CBO anticipates Medicaid enrollment will be roughly flat in 2016.

4. The CBO estimates outlays for the Children's Health Insurance Program will climb $5 billion this year, to $14 billion.

5. Outlays for health insurance exchange subsidies will increase by $5 billion to $43 billion in 2016. That growth is mainly attributable to an increase in the number of people who are estimated to have purchased subsidized coverage through the marketplaces. 

More articles on healthcare finance:

OIG: Massachusetts home healthcare provider received $15.5M in Medicare overpayments
35 NJ hospitals sued over tax-exempt status
6 healthcare CFOs in the headlines

 

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.