Officials: Slower health spending growth may boost jobs
WASHINGTON — Buoyed by a report showing that health care spending has risen by the lowest rate ever recorded, White House officials said Wednesday a continuation of the trend could lead to more jobs and lower-than-expected costs.
Reduced health care costs for employers could lead to 200,000 to 400,000 new jobs per year by the second half of the decade, said Jason Furman, the chairman of the Council of Economic Advisers.
"If just half the recent slowdown in spending can be sustained, health care spending a decade from now will be $1,400 per person lower," Furman said.
The Council of Economic Advisers report released Wednesday also said health care inflation is the lowest it has been in 50 years.
Reduced health care costs for employers could lead to 200,000 to 400,000 new jobs per year by the second half of the decade, said Jason Furman, the chairman of the Council of Economic Advisers.
"If just half the recent slowdown in spending can be sustained, health care spending a decade from now will be $1,400 per person lower," Furman said.
The Council of Economic Advisers report released Wednesday also said health care inflation is the lowest it has been in 50 years.
The White House report also cited increases in cost-sharing, such as high-deductible insurance plans, as helping to push down costs.
"Deductibles increased from 2006 to 2013," Furman said, but the pace of growth slowed from 2010 to 2013. "It didn't accelerate after the Affordable Care Act passed. In fact, it decelerated."
Because of cost reductions, the Congressional Budget Office reduced Medicare and Medicaid spending projections in 2020 by $147 billion since 2010, the report noted.
"Deductibles increased from 2006 to 2013," Furman said, but the pace of growth slowed from 2010 to 2013. "It didn't accelerate after the Affordable Care Act passed. In fact, it decelerated."
Because of cost reductions, the Congressional Budget Office reduced Medicare and Medicaid spending projections in 2020 by $147 billion since 2010, the report noted.
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