Health care inflation rate induced by Obamacare, retail prescription drugs

United States' annual national health spending soared high in the year 2014. The CNBC reported that it was the first time since the year 2010 that it reached the $3 trillion mark. The increased percentage was also higher compared to the average increase percentage of the previous years.

It is said that the there are two causes for the increase in the annual national health spending. The first one is the full Obamacare implementation. The second reason is the dramatic increase in prescription retail drug spending.

Starting in the year 2010, the annual national health expenditures had been steadily sporting low growth until the year 2014.

There is a report released the Centers for Medicare and Medicaid Services' Office of the Actuary that the national health spending went up by 5.3 percent in 2014. This is equivalent to $9,523 health expenditure for every person in the US. The 5.3 percent increase is so much higher compared to the 2.9 percent increase in 2013.

Obama's administration might be successful in terms of pulling off the new health care law to increase its coverage to those who were non-insured. However, its cost still remains as a big problem, the Express News reported. It is also stated that the Congress, which is led by the Republican Party, is still on its way to sending a repeal bill against the Affordable Care Act.

The costs of healthcare in the US is starting to increase higher than the average increase percentage. It becomes a worrisome matter simply because the health care expenditure is currently increasing faster than the US economy. If this continues, the health care expenses will take a huge portion of the country's natural resources.

According to Richard Frank, a leading economic advisor, the increase in health care insurance coverage is not surprising at all considering that more people are now covered and are now availing the services they need. He also added that this "higher-than-the-usual" increase will just be temporary and it will go back to normal in the near future.

It is still yet to determine if Frank is right or not - if the annual health care spending will slow down in the next few years or not. It is also still yet to know whether the repeal bill that the Congress is preparing will be successful in repealing the Affordable Care Act or not.

What can you say about this matter? Should the government cut the Obamacare or not? If you are not familiar with the Affordable Care Act, check the video below.