Healthcare spendings is threat to G20 ratings

As if the current problem of deteriorating finances is not enough, developed countries are expected to see some more pressure on their fiscal balances. And the major culprit in this regard is expected to be healthcare expenditure. With a vast chunk of the population included in the social security net coupled with the fact that the proportion of aged people is increasing, healthcare spending in the developed economies such as the US, Europe and Japan is set to soar.
That is why ratings agency S&P has warned that it may downgrade 'a number of highly rated' Group of 20 countries by 2015 if their governments fail to enact reforms to curb rising health-care spending and other costs related to aging populations. Unfavourable demographics is not the only factor that is piling on the pressure. More expensive new technologies and broader treatment coverage may account for as much as two-thirds of the projected increase in health-care spending. So reforms to curb healthcare expenditure are badly needed. But with so many problems already keeping governments on their toes, are they aware of the seriousness of this issue? And if so, are they ready to tackle the same? It does not look like the case if one were to go by the evidence at hand.