The worldwide recession has had a major impact on the health care system of the U.S. The effects are quite obvious in terms of insurance. As thousands of people throughout the country lost their jobs, they also lost their health insurance coverage. The recession, which lasted from late December 2007 to the middle of 2009, suppressed health care spending in the U.S. significantly, according to the federal government. The Obama administration released a report this week from the Department of Health and Human Services showing the impact of the recession in this regard.
According to the report, health spending grew by 3.9% between 2009 and 2010. The rate of growth is much lower than it had been in the 51 years prior to the recession. The recession itself cut spending by more than 17% throughout the country as consumers opted to forgo visits to the doctor in an effort to save money. While consumers stopped spending money on insurance and medical care, businesses did not. According to the report, spending from employers jumped by 40% during the recession and continues to grow today.
The federal government claims that the report shows the need for health care reform. The Affordable Care Act, passed in 2010, is meant to bring affordable health insurance coverage to more people. This aspect of the law has been challenged regularly, but the Obama administration asserts that the law is needed to ensure the continued health of the nation’s people and economy.
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