CBO: Healthcare to drive federal spending hike

Federal spending is on pace to increase over the next few years, largely driven by healthcare spending, according to a new report from the Congressional Budget Office (CBO). In this year and 2016, the federal budget deficit will drop, according to the CBO, before increasing again in 2017, due in large part to Medicare spending. Medicare, Medicaid and federal insurance exchange spending will come to 5.3 percent of gross domestic product (GDP) in 2016, and reach 6.2 percent of GDP by 2025. "Because of the aging of the population, rising healthcare costs, and a significant expansion in eligibility for federal subsidies for health insurance, outlays for Social Security and the federal government's major healthcare programs are projected to rise substantially over the next 10 years," the report states. >> Read the full article at FierceHealthFinance