Old People And Inflation Will Make Health Care Much More Expensive In America

Deutsche Bank medicare 2

Photo: Deutsche Bank

Government spending on health care related programs is expected to nearly double as a share of GDP by 2035, according to a report by Deutsche Bank.And it isn’t just because there are going to be way more old people than young people in the near future.

According to the same Deutsche Bank report, medical inflation is outpacing overall inflation.

“This rise in health care spending is due both to the ageing of the “Baby Boomer” generation and the fact that inflation for medical services is projected to continue to outpace broader measures of inflation.”

The CBO projects that about 60% of the rise in spending on health care programs over the next several decades will be because of an ageing populations, the other 40% will because of medical care is going to continue to get more and more expensive.

Deutsche Bank medicare 3

Photo: Deutsche Bank

Over the past five years, medical care services inflation has exceeded overall CPI by 2.2 percentage points on average.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.