Final answer:
Healthcare costs in the U.S. are projected to grow annually by 5.5%, a rate that surpasses inflation and places a heavy financial burden on individuals and government spending. The correct answer to the question is that the healthcare costs are rising at a rate of approximately 5.8% per year, making the correct option d. 5.8%.
Step-by-step explanation:
The cost of healthcare is rising significantly and the rate of increase in these costs has been a topic of concern for many. According to the U.S. Department of Health and Human Services, healthcare spending is projected to grow at a rate of 5.5 percent annually from now until 2027. This growth rate is indicative of the financial burden it poses on households and the economy at large. The increase in healthcare costs has consistently outpaced inflation, representing a significant share of government spending and personal income, particularly as we see the aging population grow with the Baby Boom cohort.
Calculating the percentage increase in the cost of living and relating it to healthcare costs shows a similar trend of increases. It is essential to understand that these escalating costs have implications not only on personal finances but also on the overall economic structure, as healthcare spending accounted for around 24% of federal government spending in 2014.
Healthcare costs for many years have been growing at least double the rate of inflation. This, coupled with the fact that the United States spends more on healthcare than other high-income nations with poorer health outcomes, raises substantial concerns about the efficiency and sustainability of the healthcare system. As of 2015, a significant portion of the non-elderly adult population was uninsured, and healthcare continues to represent a greater share of income as one ages.
Given the provided information, the correct answer to the question about the costs of healthcare rising per year, which is higher than inflation and beyond what many households can afford, is approximately 5.8 percent. Therefore, the correct answer is option d. 5.8%.