Top five ideas to control health care costs

Updated

Spending on health care is projected to rise from 16% of gross domestic product (GDP) in 2007 to 37% by 2050 and 49% by 2082. In other words, if allowed to grow uncontrolled, health care will eat up half of everyone's spending money by 2082. Federal spending on health care also will grow to unsustainable levels, from 4% of GDP in 2007 to 12% by 2050 and 19% in 2082.

That's the projection from the Congressional Budget Office (CBO) in its 2007 Long-Term Outlook for Health Care Spending. The report was done while Peter Orszag was director of the CBO. He is now President Obama's director of management and budget.

This level of spending is unsustainable for individuals, businesses that offer health insurance, and for the government with its spending on Medicare and Medicaid.

So what can we do to stop these costs from spiraling out of control? Let's look at the top five suggestions from Orszag in his CBO report and from the Heritage Foundation.

Advertisement