As millions of Americans file for unemployment insurance and joblessness in danger of approaching 1930`s levels amid coronavirus outbreak, the skyrocketing costs of the US health care become even more troubling.
Ever growing health care expenses were a massive burden for states even before the COVID-19 pandemic. However, with the US unemployment rate currently at 13.3% the cost of the two big government programs, Medicaid for lower-income people and Medicare for the elderly, are also set to reach record highs.
Total Medicaid expenditure is set to jump 30%, reaching $1 trillion value by 2027, according to data gathered by LearnBonds.
Medicaid Costs Have Jumped $270.5 Billion Since 2010
US health care costs have surged in recent years, with medical bills becoming a burden for millions of Americans already dealing with mortgages or credit card debt. Rising prices among hospitals and other health care providers, along with an increasing number of people on a low-income, has caused Medicaid spending to lift as well.
In 2010, the combined cost of the Medicaid program amounted to $401.5 billion, revealed Statista data and the United States Department of Health & Human Services report. By the end of 2015, this figure rose to $549.1 billion. The rising trend continued in the following years, with the Medicaid expenditure reaching almost $640bn value in 2019, the highest point in US history.
Statistics show the total cost of the US public health insurance program that aims to provide affordable health care options to low-income residents and people with disabilities is expected to touch $672 billion in 2020, a $270.5 billion increase over the last decade.
Medicaid federal expenditure represents the majority of that figure, or $418.7 billion, while state costs amount to $254 billion in 2020. Over the next seven years, these figures are set to hit $624.8 billion and $383 billion, respectively.
Analyzed by geography, California has the highest Medicaid cost among all US states. Statistics show this figure touched $83.87 billion in 2018. The state of New York ranked second with $74.8 billion worth Medicaid expenses the same year. Texas and Pennsylvania followed with $38.2 billion and $30 billion, respectively.
US Medicaid Enrollment to Hit 82 Million by 2027
A growing number of people use Medicaid in the United States. Statistics show total enrollment reached 73.9 million in 2018, with an increasing trend forecast to continue in the following years.
The United States Department of Health & Human Services report revealed the total number of Medicaid enrollees is expected to grow 1.1 percent year-on-year, covering 82 million people by 2027.
Statistics show that the Medicaid program represents the third-largest healthcare cost in the United States, covering 16.4% of total health spending in 2018. By comparison, private health insurance and the Medicare program had a 34.1% and 20.6% share of overall health care costs that year.