I knew the swelling cost of healthcare programs – including the Affordable Care Act – had a huge impact on the national budget. But when I took a gander at the latest stats, I almost fell out of my chair. For example …
Last year – and for the first time – spending on federal healthcare programs outpaced spending on Social Security.
In fact, the government spent $936 billion on health programs, including Medicare, Medicaid and subsidies related to the Affordable Care Act, better known as ObamaCare.
That’s a massive 13 percent jump from 2014, according to the Congressional Budget Office (CBO).
In contrast, spending on Social Security totaled $882 billion!
As I have been warning for years, we are now in the early stages of a sovereign debt crisis. And this kind of healthcare spending is just making matters worse.
With 80% of ObamaCare participants getting some form of government handout and with monthly premiums expected to rise by an average of 25% – even more in some areas of the country – the government may be on the hook for even more than expected.
I don’t see how this can possibly continue in its current form. And that’s the plain and simple truth.
So, who’s paying for all this?
You are! Consider …
The U.S. is already saddled with $19.8 trillion in debt. And in the latest fiscal year ending on September 30, it ran a deficit of $587 billion – a jump of 34% from the previous fiscal year.
Causes: A slowdown in the growth of federal revenues, as well as rising government spending. That pushed the U.S. deficit up for the first time since 2011, reversing the trend of falling deficits as the economy recovered in recent years.
And don’t forget: Despite these healthcare costs, the U.S. healthcare system is one of the most inefficient in the world.
|Despite these healthcare costs, the U.S. healthcare system is one of the most inefficient in the world.|
In fact, we spend twice as much per person on healthcare as other advanced countries. We spend more on healthcare than any country on the planet. Yet we rank 26th in average lifespan at just over 78 years.
Something needs to change and soon. Like our national debts that are now approaching nearly $200 trillion — when all official and unofficial IOUs are accounted for — the current healthcare model is simply not sustainable.