Health care was the largest driver of state and local expense growth between 2005 and 2015, adding up to $929 billion in spending. (Photo: Shutterstock)

As health care costs continue to rise, it’s not just employers and consumers that are feeling the burn. State and local governments are also having to make some difficult financial choices.

According to a report from Fitch Ratings, the cost of health care will eat up an astonishing 38 percent of state and local budgets by 2025. The estimate is based on a 10-year projection that assumes no offsetting policy changes and takes into account projected rates of inflation.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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