US Federal Reserve chairman Ben Bernanke says rising healthcare spending may strain public finances and harm the US economy.

He told delegates at a Senate Finance Committee meeting on healthcare the government may have to help households meet rising medical costs.

Mr Bernanke said that lower income households would be hardest hit as doctors bills and insurance fees rise.

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Ben Bernanke said: "Higher government spending on healthcare, will of necessity, require reductions in other government programs, higher taxes or larger budget deficits."

He warned that the 47 million Americans without medical insurance would be a major issue in the looming presidential election.

"Access to healthcare is the first major challenge that healthcare reform must address," he added.

(BBC)

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