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.