Question

What are the effects on U.S economy if the Cost of Health care keeps rising?  

Answer 1

The relationship between increases in health care expenses and the U.S. economy is inherently complex and multidimensional. Rising spending on health care can be seen both as a weight for broader economic development and as a pillar of sectoral and local prosperity.

Rapidly rising spending on health care is seen as lowering the rate of GDP growth and total employment, thus increasing inflation. Many analysts, rises in health care spending as having a neutral, if not positive, impact on the economy. In this view, increased health care investment is seen as increasing access to new technology and services under healthcare.

Increasing healthcare expenditure also has a significant impact on the federal budget. Many employers seek to limit their exposure to rising healthcare costs by forcing their workers to raise their contributions or by providing different types of coverage, potentially reducing available household income finances as more costs are transferred from employers to staff.