The annual report is written by the chairman of the Council of Economic Advisors and provides an overview of the nation’s economic progress. The report must be submitted to Congress no later than 10 days after the president releases his federal budget blueprint.
The economic report notes that the healthcare sector of the U.S. economy is plagued by rising spending, declining health insurance coverage and inefficient care delivery. For the past several decades, healthcare spending has risen more rapidly than GDP. The report cites Congressional Budget Office estimates predicting it is likely to account for one-fourth of GDP by 2025 without health insurance reform.
The healthcare reform legislation passed in the House and Senate last year would expand insurance coverage while slowing the rate of growth of healthcare costs, according to the economic report. Not only would the reforms help individuals, they would stimulate jobs, help small businesses and ease burdens on federal, state and local governments, according to the report.
Specifically, insurance coverage expansion would translate into broader economic improvements. The report cites a Council of Economic Advisors study from June 2009 that estimated the economic gains from reduced financial risk for the uninsured totaled $40 billion per year. The council also found an economic value of $180 billion per year from averting preventable deaths due to a lack of insurance. These and other economic gains would exceed the cost of providing insurance coverage to the uninsured, according to the president’s report.
Download the Economic Report of the President to Congress.
