Aging population, Medical costs to enhance health spending growth

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The expenditures of National health are projected to rise at a rate of 5.6 percent on average each year over the coming decade after previous year's dip of 4.8 percent from 5.8 percent in the year of 2015, latest estimates from the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS) show. 

The researchers argue that the medical costs’ average rate, which reached a "historic low" at 0.8 percent in the year of 2015, will drive the health spending growth as it will increase at a faster pace and reach 3.0 percent by the year of 2025. The aging population of country is also anticipated to contribute to the health spending growth. 
The reports states that although, the medical services’ intensity and use will increase at a slower pace compared to the growth seen in the years of 2014 and 2015 when the industry was yet feeling the "largest impacts" of a substantially huge number of insured Americans thanks to the Affordable Care Act (ACA).

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The researchers don’t think how some healthcare policy modifications and changes that have still to be realized, involving the fate of the ACA, would likely affect this spending when observing the annual financial analysis.
While the growth of health spending was also projected to increase 1.2% points faster in contrast to Gross Domestic Product per year over the next decade, it sustains to be seen whether the major transformations the United States healthcare system will be confronting in the near future will perpetuate or deal the issue. In accordance to the American Hospital Association, the plans of Trump administration to repeal the Affordable Care Act (ACA) are hoped to cost hospitals over $165 billion. Contrary, the continued push toward value-based care with MACRA's execution of the Quality Payment Program (QPP) could assist to bring spending down because value-based reimbursements have already resulted in few cost savings.
Previous year, the health spending growth during the time period of 2014 and 2015 was attributed to the increased rate of insured Americans. Although, the new estimates show Medicaid spending could have "decelerated sharply" because "enrollment growth in the program slowed significantly."  The disconnect between the projected growth in the expenditures of health as well as the insured population and the projected reduction in medical services’ use and intensity could potentially be an outcome of a rise in preventive care services, considering that the Affordable Care Act (ACA) provisions that deal prevention are working as intended. The research proves that the use of emergency departments has reduced in states that expanded the Medicaid program under the Affordable Care Act.
The United States healthcare system has been expecting the impact that the baby-boom generation will have on businesses and several have adopted latest solutions to deal the unique health requirement of population, involving technologies that permit for virtual visits and ride-sharing apps that make access to care more convenient. Still in the government insurance program for seniors and people with disabilities, 2017 year spending growth is projected to go from previous year's rate of 5.0 percent up to 5.9 percent. This is "in part because the decrease in utilization in inpatient hospital services isn’t expected to continue into the year of 2017,” says CMS. The Congressional Budget Office (CBO) reported in the month of August 2016 that more Social Security is being used by aging population and requiring more Medicare coverage, which is in turn driving spending increases.