Final answer:
In 2012, the U.S. spent a significant portion of its GDP on healthcare, with 17% reported as of 2019, which is higher than Switzerland's 11%. Factors such as the aging Baby Boom cohort and spending on Medicare and Medicaid contribute to the high healthcare costs. Despite this spending, the U.S. has worse health outcomes compared to other developed nations.
Step-by-step explanation:
United States Healthcare Spending as Percent of GDP In 2012, the United States spent a significant portion of its gross domestic product (GDP) on healthcare. While the question suggests that healthcare spending is projected to reach 20 percent by 2016, the actual percentage of GDP spent on healthcare was 17% as of 2019. This level of healthcare expenditure is much higher compared to other countries, such as Switzerland, which spent about 11% of its GDP on healthcare. Moreover, despite this high level of spending, the United States has experienced worse health outcomes in comparison to other developed countries, including higher infant mortality rates and a shorter life expectancy. One of the reasons for the high cost of healthcare in the United States is the aging population, particularly the Baby Boom cohort. One key component of federal spending on healthcare is on programs like Medicare and Medicaid. These programs have seen increased expenditures over the years, contributing to the overall healthcare spending as a percentage of GDP. The trend suggests a significant impact of demographic changes on healthcare costs.