The Centers for Medicare and Medicaid Services projected mid-February that US healthcare spending would increase 5.3% in 2018.

 

Factors affecting this increase include:

  • Rising prices of medical goods and services
  • Higher Medicaid costs
  • Ageing baby-boom population driving Medicare enrollent
  • More disposable personal income

Spending in 2016 rose 4.3 percent and spending in 2017 rose 4.6 percent (originally projected at 5.4% for 2017).  Healthcare spending for 2017 was about $3.5 trillion.

CMS projects a 5.5% annual increase in healthcare expenditures from 2017 to 2026, making healthcare 19.7% of the US economy in 2026 ($5.7 trillion).

 

Source:

Yasmeen Abutaleb, "U.S. Healthcare Spending to Climb 5.3 Percent in 2018: Agency," Reuters, 14 February 2018, https://www.reuters.com/article/us-usa-healthcare-spending/u-s-healthcare-spending-to-climb-5-3-percent-in-2018-agency-idUSKCN1FY2ZD

unsplash-logoLuis Melendez

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