U.S. health care spending grew at a historically low rate 4.0 percent in 2009, the latest reported year, according to a report by CMS and other government officials in Health Affairs.
However, due to a slump in the overall economy, healthcare's share of the gross domestic product rose from 16.6 percent in 2008 to 17.6 percent in 2009. Also, healthcare's share of total federal revenue rose from 37.6 percent in 2008 to 54.2 percent in 2009, due to strong growth in federal healthcare spending and declining federal revenues.
Healthcare spending has grown at a slower rate every year since 2002, when it increased 9.5 percent, and the slowdown was more pronounced in 2008 and 2009 due to the recession, according to a New York Times report on the study.
The Times reported the following findings on different sectors of healthcare spending in the Health Affairs study, which requires a payment to read beyond a short abstract:
Hospitals and physicians. Many hospitals reported fewer admissions and spending on physicians services increased at the slowest rate since 1996.
Medicare. Medicare spending rose 7.9 percent in 2009, the same rate as in 2008, while enrollment grew about 2 percent. Medicare spent $502 billion in 2009, accounting for one-fifth of all healthcare spending. Enrollment in the traditional fee-for-service Medicare program declined as more beneficiaries moved to Medicare Advantage managed care plans. Spending increased an average of 2.3 percent per person in Medicare Advantage and 6.9 percent per person in fee-for-service Medicare.
Medicaid. Due to enhanced matching payments, federal Medicaid spending increased 22 percent in 2009, the highest rate of growth since 1991, while state Medicaid spending decreased 9.8 percent, the largest drop in the program’s history.
Private payors. Healthcare spending by private insurers grew only 1.3 percent in 2009 and the number of people with private coverage declined by 3.2 percent, by 6.3 million people.
Out-of-pocket spending. Patients' out-of-pocket spending rose just four-tenths of 1 percent, compared with an increase of 3.1 percent in 2008.
Pharmaceuticals. Retail spending on prescription drugs increased at a higher rate than in 2008, due to higher price increases and a greater number of prescriptions dispensed.
Read the Health Affairs abstract of its report on healthcare spending.
Read the New York Times report on the full Health Affairs article.
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However, due to a slump in the overall economy, healthcare's share of the gross domestic product rose from 16.6 percent in 2008 to 17.6 percent in 2009. Also, healthcare's share of total federal revenue rose from 37.6 percent in 2008 to 54.2 percent in 2009, due to strong growth in federal healthcare spending and declining federal revenues.
Healthcare spending has grown at a slower rate every year since 2002, when it increased 9.5 percent, and the slowdown was more pronounced in 2008 and 2009 due to the recession, according to a New York Times report on the study.
The Times reported the following findings on different sectors of healthcare spending in the Health Affairs study, which requires a payment to read beyond a short abstract:
Hospitals and physicians. Many hospitals reported fewer admissions and spending on physicians services increased at the slowest rate since 1996.
Medicare. Medicare spending rose 7.9 percent in 2009, the same rate as in 2008, while enrollment grew about 2 percent. Medicare spent $502 billion in 2009, accounting for one-fifth of all healthcare spending. Enrollment in the traditional fee-for-service Medicare program declined as more beneficiaries moved to Medicare Advantage managed care plans. Spending increased an average of 2.3 percent per person in Medicare Advantage and 6.9 percent per person in fee-for-service Medicare.
Medicaid. Due to enhanced matching payments, federal Medicaid spending increased 22 percent in 2009, the highest rate of growth since 1991, while state Medicaid spending decreased 9.8 percent, the largest drop in the program’s history.
Private payors. Healthcare spending by private insurers grew only 1.3 percent in 2009 and the number of people with private coverage declined by 3.2 percent, by 6.3 million people.
Out-of-pocket spending. Patients' out-of-pocket spending rose just four-tenths of 1 percent, compared with an increase of 3.1 percent in 2008.
Pharmaceuticals. Retail spending on prescription drugs increased at a higher rate than in 2008, due to higher price increases and a greater number of prescriptions dispensed.
Read the Health Affairs abstract of its report on healthcare spending.
Read the New York Times report on the full Health Affairs article.
-Boomers Turn 65 in January, Threaten to Bankrupt Medicare
-Federal Deficit Panel's Draft Report Includes Fee-Fix, Cuts for Hospitals
-Private Insurers' Spending Rises Fastest for Hospitals