Healthcare spending is expected to reach nearly $4.64 trillion by 2020, half of which will come from government sources, according to research published in Health Affairs.
The Office of the Actuary at the Centers for Medicare and Medicaid Services also projected healthcare spending in the U.S. is projected to grow at an annual average rate of 5.8 percent from 2010-2020, which is 1.1 percentage points faster than expected GDP growth. Additionally, healthcare spending is projected to be nearly one-fifth of the GDP by 2020, up from 17.6 percent in 2010.
Other key projections in CMS' research include the following:
• When private and public health coverage are expanded in 2014, healthcare spending is projected to grow 8.3 percent, compared to 5.5 percent in 2013.
• In the absence of the Affordable Care Act, projected healthcare spending in the U.S. would have risen more slowly from 2010-2020, increasing at an annual rate of 5.7 percent instead of the 5.8 percent that is now projected.
• Spending on prescription medications is projected to increase by 10.7 percent in 2014, 5.1 percentage points and $15.8 billion more than would have been the case in the absence of the Affordable Care Act.
• Spending on physician and clinical services is projected to grow by 8.9 percent in 2014, 3.1 percentage points and $17.8 billion more than it would have been without the Affordable Care Act.
• Hospital spending growth is projected to accelerate to 7.2 percent in 2014, one percentage point and $8.6 billion higher as a result of the Affordable Care Act.
Read the Health Affairs article on CMS' projections on healthcare spending.
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The Office of the Actuary at the Centers for Medicare and Medicaid Services also projected healthcare spending in the U.S. is projected to grow at an annual average rate of 5.8 percent from 2010-2020, which is 1.1 percentage points faster than expected GDP growth. Additionally, healthcare spending is projected to be nearly one-fifth of the GDP by 2020, up from 17.6 percent in 2010.
Other key projections in CMS' research include the following:
• When private and public health coverage are expanded in 2014, healthcare spending is projected to grow 8.3 percent, compared to 5.5 percent in 2013.
• In the absence of the Affordable Care Act, projected healthcare spending in the U.S. would have risen more slowly from 2010-2020, increasing at an annual rate of 5.7 percent instead of the 5.8 percent that is now projected.
• Spending on prescription medications is projected to increase by 10.7 percent in 2014, 5.1 percentage points and $15.8 billion more than would have been the case in the absence of the Affordable Care Act.
• Spending on physician and clinical services is projected to grow by 8.9 percent in 2014, 3.1 percentage points and $17.8 billion more than it would have been without the Affordable Care Act.
• Hospital spending growth is projected to accelerate to 7.2 percent in 2014, one percentage point and $8.6 billion higher as a result of the Affordable Care Act.
Read the Health Affairs article on CMS' projections on healthcare spending.
Related Articles on Healthcare Spending:
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CBO: Mandatory Healthcare Spending Will Surge from Less Than 6% of GDP to 9% of GDP in 2035