Drop in GDP growth may be linked to healthcare

The surprise drop in the U.S. Gross Domestic Product during the first quarter may be linked to healthcare and the impact of the Affordable Care Act, the Wall Street Journal reported. According to the newspaper, healthcare spending during the quarter declined at a 1.4 percent annualized rate despite the signups for coverage via the health insurance exchanges and the expansion of Medicaid eligibilty. Initial forecasts had predicted healthcare spending would increase more than 9 percent. Article



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