National health spending grew 7.1 percent year-over-year in March, the highest annual rate recorded since February 2005, according to a report from the Altarum Institute Center for Sustainable Health Spending.
In March, health spending also grew 3.6 percent faster than the gross domestic product, and the health spending share of the GDP reached an all-time high of 17.9 percent. Total health spending increased to a seasonally adjusted annual rate of $3.07 trillion in March, compared with $3.05 trillion in February. Hospital spending was $989 billion and represented 32 percent of total health spending.
The acceleration in spending growth was driven by both the improving economy and expanded health insurance coverage under the Patient Protection and Affordable Care Act, according to the report.
Meanwhile, healthcare prices in March grew 1.1 percent year-over-year, just one-tenth above the all-time lowest growth rate. Hospital prices grew 1.3 percent year-over-year, on par with the February rate. This suggests that the increase in healthcare spending growth has been driven by greater utilization rather than higher prices, according to Altarum.
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