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Healthcare Spending to Rise 6 Percent Annually Through 2025

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By    |   Wednesday, 13 Jul 2016 05:20 PM

Total U.S. healthcare spending is projected to increase 5.8 percent per year through 2025 — far outpacing overall economic and wage growth, federal officials said this week.

The Centers for Medicare & Medicaid Services reported that average increase "remains lower than the average over [the] previous two decades before 2008," which was nearly 8 percent.

But federal officials acknowledged healthcare spending will outpace GDP — a measure of overall economic activity — by 1.3 percentage points. That means healthcare's portion of GDP will rise from 17.5 percent in 2014 to 20.1 percent by 2025, CMS said.

Overall, national health expenditures have reached $3.2 trillion.

In a press release, CMS Acting Administrator Andy Slavitt said the Affordable Care Act of 2010 has held costs lower than they would otherwise have been.

"The Affordable Care Act continues to help keep overall health spending growth at a modest level and at a lower growth rate than the previous two decades. This progress is occurring while also helping more Americans get coverage, often for the first time," he said.

“Per-capita spending and medical inflation also remain at historically very modest levels, demonstrating the importance of continuing to reform our delivery systems. As we look to the future we must continue our efforts that keep people healthy, providing access to affordable, quality care, while spending smarter across all categories of care delivery.”

But critics of Obamacare have argued the law has fueled increases in consumers’ share of health costs.

Among them: Big hikes in insurance premiums (projected to be 11 percent next year), an increase in high-deductible plans, and skyrocketing drug spending — which CMS also expects grow an average of 6.7 percent per year through 2025.

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US healthcare spending is projected to increase by nearly 6 percent per year through 2025 - outpacing economic and wage growth, federal officials said this week.
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2016-20-13
Wednesday, 13 Jul 2016 05:20 PM
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