US Health Care Spending Tops Record $2T

Medicare jumps record 19% with new drug subsidy

By Colleen Barry, Newser Staff

Posted Jan 9, 2008 4:40 AM CST

(Newser) – US health-care spending in 2006 increased 6.7% to a record $2.1 trillion—an average of $7,000 for every person in America. Medicare spending jumped 19%, its fastest growth rate in 25 years, according to the latest government statistics published yesterday in the journal Health Affairs. The Medicare boost was due largely to shifting 6.2 million low-income seniors from Medicaid drug programs to a subsidized Medicare prescription plan.

Health-care spending grew faster than the economy by 0.6%, and the price of medical services continued to rise faster than wages. It accounted for 16% of the nation's economy. "The cost of health care continues to be a real and pressing concern,'' said a Medicare administrator. Two Democratic lawmakers said the latest statistics cry out for some kind of national health-care reform.

Health care spending topped $2 trillion in 2006. (KRT Photos)

US NEWS HEARINGIMPLANT 2 MW (KRT Photos)

James Antonoff poses with his daily prescriptions at his home, in Alpharetta, Ga. in this Nov. 18, 2006, file photo. Many low-income Medicaid participants switched to a Medicare drug plan in 2006. (AP... (Associated Press)

Seniors register for Medicare. (Getty Images)

Spending on prescription drugs increased sharply in 2006. (Getty Images)

Health care spending topped $2 trillion in 2006. (Getty Images)

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US Health Care Spending Tops Record $2T

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On Way Out, Medicare Boss Bashes 'Extreme' Waste

Donald Berwick says 20-30% of health care spending helps no one

Health Care Costs Hit All-Time High

And the government will soon be paying 50% of them

Medicaid Kids Given Antipsychotics 4X More

Seen as most effective treatment; counseling often goes by wayside

Obama Seeks Another $313B in Health Cuts

He wants to reduce Medicare payments to hospitals

To Cut Deficit, Rein in Health Costs: Orszag

Budget director makes White House's case for cutting expenses

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US Health Care Spending Tops Record $2T

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OTHER STORIES ON OUR RADAR

health care costs • Medicare • Medicaid • prescription drugs

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

On Way Out, Medicare Boss Bashes 'Extreme' Waste

Donald Berwick says 20-30% of health care spending helps no one

Health Care Costs Hit All-Time High

And the government will soon be paying 50% of them

Medicaid Kids Given Antipsychotics 4X More

Seen as most effective treatment; counseling often goes by wayside

Obama Seeks Another $313B in Health Cuts

He wants to reduce Medicare payments to hospitals

To Cut Deficit, Rein in Health Costs: Orszag

Budget director makes White House's case for cutting expenses

About Us

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Newser By Users

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