America’s Health Care Bill Is Expected To Balloon 60% By 2032 - The Average Joe

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    America’s Health Care Bill Is Expected To Balloon 60% By 2032

    Rhea Lobo

    June 13, 2024

    They say laughter is the best medicine, and given the soaring health costs, it might soon be the only affordable one. National health spending is on track to hit $7.7T by 2032, making up ~20% of our GDP. This surge is fueled by increasing demand for care, more insured people, and new Medicare enrollees. The end of COVID-19 measures has led to more doctor and hospital visits, pushing costs even higher.

    • In 2023, national health expenditures reached $4.8T — growing 7.5% year-over-year, three times faster than GDP.
    • In 2024, Health Affairs projects slower growth rates: 5.2% for national health expenditures (i.e., Medicare and Medicaid) and 5.3% for personal health expenditures (i.e., doctor visits and prescription costs).

    Do we need to sell our organs to cover the bill? Fortunately, no. While the last of the baby boomers will push Medicare spending up over the next decade, relief is on the horizon. Starting in 2026, the Inflation Reduction Act will introduce significant reforms, including a cap on out-of-pocket expenses and better drug price negotiations. This should stabilize or even reduce Medicare expenses over time, but Americans with private insurance are still likely to face higher prices.

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