In an article from Self Inc., new research shows state governments are spending more money on health care than ever before, even before the current pandemic. With the recent monies from the CARES Act and the Coronavirus Response and Relief Supplemental Appropriations Act, state governments were able to shore up failing health care facilities and distribute vaccines. But what will happen after the pandemic?
From the story: “At the state and local level, total spending on health care has more than doubled over the last two decades, from $127.3 billion in 2000 to $321.7 billion in 2019 (a 70% increase after adjusting for inflation). While state and local spending has increased overall, health also represents an increasing share of the total: in 2000, health care was 8.5% of total spending, while in 2019, that figure rose to 9.6%.
A number of factors are contributing to this increased total. Some experts cite a reliance on expensive new innovations and technologies in care and administrative complexity of insurers and hospitals as a major contributor to overall costs. The aging of the Baby Boomer generation, which totals more than 70 million Americans, brings greater health needs and increases costs as well. Amid these other factors, the expansion of Medicaid under the Affordable Care Act has also increased what states must spend on their portion of the program. Although, it’s important to note that most of Medicaid spending is categorized as public welfare spending.”
According to Self, California, Texas, New York and Florida are the top spenders, with Wyoming, South Carolina and Kansas are dropping big bucks in health care as well.
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