Minnesota health care costs could double in next decade

A new state report said Health care costs in Minnesota grew by four percent in 2016, a relatively low number

The Minnesota Department of Health study had grimmer news, however.

The pace of health care spending growth is expected to accelerate to 7.4 percent between 2017 and 2026, meaning costs could double over the next decade.

What it means is Minnesota would be spending $1 out of every $6 generated by the state’s economy on health care.

“The long-term outlook shows big financial challenges ahead for individuals, employers and government,” Minnesota Health Commissioner Jan Malcolm said in a statement.

The cost jump is due to higher prices, more frequent use of health care and technology costs.

The report also noted a significant increase in out-of-pocket spending requirements for Minnesotans with health insurance.

In the past, private health plans have accounted for the majority of health care spending in Minnesota. That will change in the next 10 years, as the share of public-sector spending is expected to draw even.