Rising Care Costs Through 2024 Drives Projected Job Growth
Industry Perspective Annual health spending is expected to grow an average of 5.8 percent from 2014 through 2024 a new study reports.
By 2024, $1 in every $5 spent in the United States will be on health care costs, according to a government report released in the journal Health Affairs. The Office of the Actuary at the Centers for Medicare and Medicaid Services said this reflects an increase in the number of people with health insurance under Obamacare, stronger economic growth and an aging population.
The Affordable Care Act extended health insurance to about 8.4 million previously uninsured.
Health inflation is forecast to outpace inflation of the gross domestic product; by 2024, health spending is projected to account for 19.6 percent of the gross domestic product.
The projected forecast expects spending will grow by an average of 5.3 percent from 2016 to 2018, and increase in following years to 6.2 percent annually through 2024 because of strong economic growth, which leads to increased use of health care goods and services.
"The projected forecast expects spending will grow by an average of 5.3 percent from 2016 to 2018, and increase in following years to 6.2 percent annually through 2024"
As more people enter the health care system, demand for qualified health care employees is rising. According to the Bureau of Labor Statistics, the health care and social assistance sector is one of the largest industries in the country, with almost 22 million jobs projected for 2022, an increase of almost five million jobs from 2012 to 2022, a 29 percent increase. This industry is projected to be one of the fastest growing because of the demand for health care workers to care for the needs of an aging population.
Health care support occupations and health care practitioner and technical occupations top the list of the fastest-growing occupational groups from 2012 to 2022. Health care support occupations are projected to grow by 28 percent, while health care practitioner and technical support occupations – a group that includes doctors and nursing personnel -- are projected to grow by 22 percent.
Calling all aides
The demand for personal care aides is projected to grow 53 percent from 2012 to 2022, followed by home health aides and diagnostic medical sonographers. Projected job growth for personal care aides and registered nurses in terms of thousands of jobs is 581 and 527 respectively.
The big unknown, however, remains the extent the Affordable Care Act will impact health care spending over the next decade.