U.S. health care spending now accounts for 16% of GDP and is expected to rise to 25% by 2025. Health care costs are consuming an ever greater portion of our federal budget. Medicare and Medicaid account for a large and growing share of federal spending—23% last year—and 6% of GDP, but if their rate of growth continues unabated, that share is expected to substantially increase: to 9% of GDP by 2035 (or 30% of total spending on health care) and to 19% of GDP (38% of total health care spending) by 2082.
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