- December 10, 2017
- Posted by: Senergene
- Category: News
According a study released by the Centers For Medicare and Medicaid (CMS) Office of the Actuary the overall national health spending increased 4.3 percent following 5.8 percent growth in 2015. Published on December 6, 2017 as a Web First by Health Affairs, the study indicates that following the Affordable Care Act (ACA) coverage expansion and significant retail prescription drug spending growth in 2014 and 2015, health care spending growth decelerated in 2016. The report further concludes that the 2016 expenditure slowdown was broadly based as growth for all major payers (private health insurance, Medicare, and Medicaid) and goods and service categories (hospitals, physician and clinical services, and retail prescription drugs) slowed in 2016.
During 2014 and 2015, the health spending share of the economy increased from 17.2% in 2013 to 17.7 % in 2015. The increases in the health spending share of the economy were largely due to coverage expansion that contributed to 8.7 million individuals gaining private health insurance coverage and 10.2 million gaining Medicaid coverage over the period and to significant growth in retail prescription drug spending.
Healthcare Spending in 2016:
Health care spending grew 1.5 percentage points faster than the overall economy in 2016; from 17.7 % in 2015 to 17.9 % in 2016.
Private health insurance in 2016:
In 2016, healthcare spend increased 5.1% to to $1.1 trillion, a slower growth than the 6.9 % in 2015.
Spending grew 3.6 % to $672.1 billion in 2016 in 2016, a slower growth than the previous two years. Per the study, the slower growth in 2016 was largely due to slower growth in spending for both Medicare fee-for-service
Government sponsored Medicaid spending experienced a slower growth in 2016, increasing 3.9 % to $565.5 billion. State and local Medicaid expenditures grew 3.2 % in 2016, while federal Medicaid expenditures increased 4.4 % in 2016.