A new study from an economics professor at N.C State finds that most estimates of the cost of health care reform are overly pessimistic and that health care spending actually spurs economic activity, a finding that’s almost always left out of the debate.
Dr. Al Headen at NCSU is a co-author of the report that appears in the latest issue of Proceedings of the National Academy of Sciences. Headen points out that people also often forget the increased productivity of seniors as they live longer and the implications that has for Medicare.
People will be paying into government programs, such as Medicare, for a longer time – while simultaneously delaying the point where they need to draw on those programs. Our research suggests that if the government’s projections had accounted for this improved productivity, those projections would have been less pessimistic.
Are you paying attention Joe Lieberman?