Healthcare spending in the U.S. sends damaging ripple effect across other major sectors, households, Moody’s report says

Healthcare Finance News September 18, 2018
Beth Jones Sanborn

Households and businesses made up nearly half of the spending, meaning consumers, businesses are unable to spend in other sectors.

Significantly higher healthcare spending in the United States will continue a damaging ripple effect across the economy, crunching public sector budgets and those of businesses and households as well. That’s according to a new report from Moody’s Investor Service.

The U.S. spends almost double what other high-income countries spend as a share of their economies, Moody’s said, totaling $3.3 billion in 2016 or 18 percent of GDP. Households and businesses made up nearly half of the spending.

“An aging population and rising costs will drive spending higher, with credit negative implications for the public and private sectors,” Moody’s said.

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