Senate Democrats

The Cost of Health Care

There’s one fact all Americans know all too well — health care costs are eating into their paychecks.

Economists project that if health insurance reform fails, the resulting lower Gross Domestic Product (GDP) will reduce family incomes by $2,600 in 2020 and by $10,000 in 2030. These are astounding figures and represent only a fraction of the overall impact inaction on health care could have.

According to a report by the Council of Economic Advisors (CEA):

“If health care costs continue to grow at historical rates, the share of GDP devoted to health care in the United States is projected to reach 34 percent by 2040.

If health care costs continue to grow at historical rates, Medicare and Medicaid spending will rise to nearly 15 percent of GDP in 2040.

Perhaps the most visible sign of the need for health care reform is the 46 million Americans currently without health insurance. CEA projections suggest that this number will rise to about 72 million in 2040 in the absence of reform.”

At a glance, if we pass comprehensive health care form we will:

  • Prevent disastrous increases in the federal budget deficit
  • Reduce the cost of health insurance for millions of Americans
  • Increase net economic well-being by roughly $100 billion a year
  • Help to “level the playing field” between large and small businesses

There’s no time to wait. We must pass health care reform.

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