Health Spending and Its Effects on Future Managers

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Submitted By aelk0919
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Health Spending and its Effects on Future Health Care Managers
The United States spends more on healthcare than then any other country in the world. In 2012 the United States spent an average of $8,915 per person on health care, totaling $2.8 trillion. Unfortunately, spending will continue to trend upwards due to a number of key factors. According to Kaiser Health News staff writer, Mary Carey, “national health spending will increase modestly over the next decade as a result of an aging population, a recovering economy, and the health law’s expanded insurance coverage”(Carey, 2014) As baby boomers continue to age and the Affordable Care Act changes the health insurance market, “employment of medical and health services managers is projected to grow 23 percent from 2012 to 2022, much faster than the average for all occupations” (Bureau of Labor Statistics, 2014). This paper will focus on national health spending of the United States and the positive and negative effects it has on future health care managers.
The Centers of Medicare and Medicaid Services (CMS) estimates health spending grew in 2013 by 3.6 percent marking the “fifth year of historically low rates of spending growth” (Sisko et al, 2014). However, it is “forecasted to rise to 5.6 percent in 2014 due to the combined effects of the expansion of coverage from the Affordable Care Act, faster economic growth, and growing age of the population” (Sisko et al, 2014). During the next decade economic growth is projected to be faster than it has been since 2007 resulting in a demand of more health care goods and services (Sisko et al., 2014). Findings also suggest that the health share of GDP is expected to rise from 17.2 percent in 2012 to 19.3 percent in 2023. The 5.7 percent annual growth in overall health spending through 2023 is occurring as additional baby boomers continue to age into Medicare and as the…...

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