The government's share of U.S. health spending is expected to surge over the next decade as President Obama's healthcare law expands insurance coverage and more Americans become eligible for Medicare, according to a report from actuaries at the Centers for Medicare and Medicaid Services published on Wednesday by the journal Health Affairs.
In 2008, governments at all levels were responsible for about $1.4 trillion, or 41 percent, of the nation’s health spending. But by 2023, CMS actuaries project that governments will be spending $2.5 trillion, or 48 percent, of the national total (which is expected to reach $5.2 trillion in 2023).
Obamacare expands Medicaid and offers subsidies for individuals to purchase privately-administered insurance on government-run exchanges. These changes will drive up healthcare spending at the same time that Medicare is already expected to expand as baby boomers reach retirement age.