White House links health reform to economic growth

The President's Council of Economic Advisors (CEA) released a new report (PDF) linking health system reform and the nation's future economic growth. The CEA notes that, in the absence of reform, health care costs will grow from 18 percent of the nation's gross domestic product (GDP) this year to 34 percent by 2040. Even a 0.5 percentage-point reduction in the rate of growth in health care costs would limit the 2040 share of GDP to 30 percent, and slowing the rate of growth by 1.5 percent would significantly limit health care costs to 23 percent of GDP in 2040.

The report also details how health system reform will improve the nation's economy by improving federal budget deficit projections, lowering unemployment by one-quarter of a percentage point per year—which would account for about 500,000 jobs—and increasing the net economic well-being of U.S. citizens.