CBO: The Overuse, Underuse, and Misuse of Health Care
[Testimony. Peter R. Orszag,Director. July 17,2008]
"The most important factor influencing the federal government’s long-term fiscal balance is the rate of growth in health care costs. CBO projects that, without any changes in federal law, total spending on health care will rise from 16 percent of gross domestic product (GDP) in 2007 to 25 percent in 2025 and 49 percent in 2082; net federal spending on Medicare and Medicaid will rise from 4 percent of GDP to almost 20 percent over the same period.1 Many of the other factors that will play a role in determining future fiscal conditions over the long term—including the actuarial deficit in Social Security and a decision about extending the 2001 and 2003 tax laws past their scheduled expiration in 2010—pale by comparison with the impact and challenges of containing growth in the cost of federal health insurance programs."