In recent years, healthcare spending growth has hit a record low, according to the American Hospital Association.
The Congressional Budget Office's 2013 long-term budget outlook report has predicted national healthcare spending will increase to approximately 22 percent of the gross domestic product by 2038 under current law. However, projected spending on federal healthcare programs has decreased compared with last year's CBO estimate, which projected federal spending for major healthcare programs would equal 8.7 percent of the GDP in 2038. A small amount of that drop resulted from a decline in the projected long-term healthcare cost growth rate.
The AHA has released an infographic focused on the recent low healthcare spending growth rate. Here are three key observations from the graphic.
1. Since 2010, national health expenditures have grown at an average annual rate of 3.8 percent, the lowest rate on record for any four-year period since 1960.
2. The CBO lowered its projections of Medicare spending for fiscal years 2014 through 2020 by $518 billion between August 2010 and February 2014.
3. In line with overall healthcare spending, the hospital price growth rate has dropped as well, from 5.8 percent in 2003 to 2 percent in 2013. Hospitals account for about one-third of national health expenditures.
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