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Private Rx Spending Lower, Gov’t Rises

From a annoyed Reuters:

Report shows U.S. healthcare spending growth slows

By JoAnne Allen Joanne Allen Tue Jan 5

WASHINGTON (Reuters) – U.S. healthcare spending rose at the lowest rate on record in 2008 due to the recession, but still reached $2.3 trillion and devoured 16.2 percent of the U.S. economy, government analysts said in a report on Tuesday.

The report, issued by the government’s Centers for Medicare and Medicaid Services (CMS), illustrated anew the huge burden that healthcare costs place on the United States, which spends more on such care than any other country in the world

The report showed that U.S. healthcare spending rose 4.4 percent in 2008. That was the slowest growth rate in nearly 50 years of federal tracking of such spending and was lower than the 6 percent growth increase recorded a year earlier, CMS analysts reported in the journal Health Affairs.

CMS, the part of the U.S. Department of Health and Human Services responsible for the massive Medicare and Medicaid government health insurance programs, said federal healthcare spending increased 10.4 percent in 2008 over 2007 levels.

The agency said healthcare accounted for almost 36 percent of federal spending in 2008, up from 28 percent of federal spending the prior year. CMS said that the $2.3 trillion spent on healthcare in 2008 translated to $7,681 per person.

Despite the slowdown in the rate of growth, healthcare spending made up 16.2 percent of U.S. gross domestic product in 2008, up from 15.9 percent the year before, according to the agency’s annual spending report…

The U.S. Chamber of Commerce, which opposes the Democratic healthcare measure, said there is a lesson in the report that the federal government should heed.

"Interestingly enough, it (the report) shows that while Americans were tightening their belts and conserving their funds, the federal government was spending more and more money," James Gelfand, the chamber’s senior manager of health policy, said in a telephone interview.

Just like with “global warming,” this crisis may be over even before it has really begun.

By the way, as the evil incarnate Chamber of Commerce notes, only private sector spending has slowed.

In contrast, government spending grew at more than twice the rate of private spending.

Big surprise, huh?

This article was posted by Steve on Tuesday, January 5th, 2010. Comments are currently closed.

7 Responses to “Private Rx Spending Lower, Gov’t Rises”

  1. bill says:

    It never fails … government is the problem not the solution.

  2. proreason says:

    Maybe the headline should read…….”Health costs rise. Americans demand shorter lifespans to hold spending down. Government responds.”

  3. joeblough says:

    It might be useful to think of the whole “Health Care” debacle as a revolution of the political class.

    We do have at least two distinct classes in America, with distinctly different outlooks and interests:

    — The political class, that lives off of our taxes and occupies itself with ordering the rest of us around.

    — The rest of us, that produce the wealth and technology.

    The grab at 16% of the economy and grounds for regulating nearly all of our behavior is a bloodless coup d’etat being conducted against the nation by the political class as a whole.

    And don’t think it isn’t intentional.

    And we are doing what about it … ?

  4. 2old2givea says:

    Let me see if I have this straight… The government won’t do anything that would really help the economy (like *gasp* cut taxes), so more & more are laid off thus losing their healthcare and now can’t afford their meds so the government keeps passing unemployment extensions, more and more are on Medicaid, Food Stamps, etc., etc. as fast as they can, all the while piling on more and more taxes, fines, tariffs, (whatever they chose to call them), onto us and employers. So instead of blaming their anti-capitalist policies, they blame the high cost of healthcare – only b/c they want to pass a healthcare bill. Is that about right?

    Let’s hope they keep underestimating us on such a scale.

    • proreason says:

      Yes.

      The reason they tanked the economy and forced 30 million people into unemployment is to create the need for their Marxist policies, particularly Health Care.

      But Health Care is just a means to an end.

      The end is total control of the country, which they will then loot, just as the Communists looted Russia.


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