|Issue of the Day: Health Care to be Addressed by President Obama|
Published Monday, May 11th, 2009
In an effort to influence the Health Reform that President Obama is determined to initiate, hospitals, insurance companies, drug makers and doctors will voluntarily slow their rate increases in coming years, potentially adding up to $2 trillion in spending reductions over 10 years. 6 major health groups pledged to cut the rise in health care costs by 1.5 percentage points each year. This move will help provide health insurance to the growing 50 million who now have no health insurance. Obama’s plan is estimated to cost the federal government $1.2 to $1.5 trillion over 10 years, only half of that has been accounted for by the White House. Health groups who discouraged the health reforms prescribed by the Clinton administration seem to be coming forward to help President Obama for a variety of reasons.
By 2007, overall annual consumer expenditures for Private and public health care has reached 1.2 trillion and 1.02 trillion respectively. The difference in public and private expenditures has not always been so wide; between 1977 and the present, the range has slowly grown wider, except between 1994 to 2000 where private shrank and public grew. The number of uninsured has grown from 14% in 2000 to 15.3% of the population in 2007. The percentage includes the State Children’s Health Insurance Program (SCHIP), which has grown from 3.4 million in 2000 to 6 million in 2005. Most prone to be uninsured are minorities, who are disproportionately uninsured at 24.5-21.8% and those who of 18-44 years of age. All of which has lead to a steady increase in government health care rolls from 10.3% in 2000 to 13.2% in 2007.