I would like to propose this as a thread for people to write in their predictions for the next year and the next decade, when practical with probabilities attached. I'll probably make some in the comments.
In an analysis that does not account for any health-care reform bill, the Department of Health and Human Services projected that health care expenditures would double from the 2009 level of $2.2 trillion (16.2% of 2009 GDP) to $4.4 trillion in 2018 (20.3% of projected 2018 GDP). This provides us a baseline from which to predict the cost-control effectiveness of health care reform.
I'm somewhat bullish on the potential of the pilot programs and the excise tax to lower med costs for a given level of health outcomes, although I'm not supremely confident in that. I also think there is a long tail of events or technologies that could unexpectedly increase med expenses (that would do so with or without health-care reform). Furthermore, the current bill will expand coverage for a substantial number of people, as a result of which total expenditures will definitely rise. All things together, here are my (very rough) intuitions:
I'd give 1:1 odds that health-care expenditure is less than or equal to $5 trillion in 2018.
I'd give 5:1 odds that it's less than or equal to $4 trillion in 2018.
I'd give 5:1 odds that it's greater than $6 trillion in 2018.
Conditioned on current health-care reform failing (i.e. no pilot programs or excise tax), I'd only give 2:1 odds that health-care expenditure is less than or equal to $4.4 trillion in 2018. (Long tails and overly rosy estimates.)
EDIT: I had this up for a few minutes with different numbers, before I remembered that the individual mandate and subsidies would raise med expenses significantly.
Are those figures inflation-adjusted?
In order:
* http://predictionbook.com/predictions/1667
* http://predictionbook.com/predictions/1668
* http://predictionbook.com/predictions/1669
(As health reform passed, I omit any consideration of #4.)
I would like to propose this as a thread for people to write in their predictions for the next year and the next decade, when practical with probabilities attached. I'll probably make some in the comments.