For the federal government, the major problem with macro affordability is that the healthcare expenditures growth rate greatly exceeds the growth rate in the available income (GDP). This implies that if the current growth trends continue without change, spending on healthcare will become unsustainable.

Question

Quizplus · Accepted Answer

The major problem with macro affordability for the federal government is indeed that healthcare expenditures are growing at a rate that far exceeds the growth rate of the Gross Domestic Product (GDP). This discrepancy means that if these trends persist without any intervention or change, the proportion of national income allocated to healthcare will continue to increase, potentially reaching levels that are unsustainable, as it would leave less room for other essential expenditures and investments.

For the Federal Government, the Major Problem with Macro Affordability