News: CMS releases projections of national health expenditure date

The national health expenditure growth is expected to average 5.6% annually over 2016-2025, according to a report published by Health Affairs and authored by CMS’ Office of the Actuary, CMS reported. It is projected to outpace the projected growth in Gross Domestic Product (GDP) percentage points, resulting in the health share of GDP to rise from 17.8% in 2015 to 19.9% by 2025, largely due to the projected growth in medical prices. Total health spending is projected to have reached nearly $3.4 trillion for 2016, a 4.8% increase from 2015. The report also found that by 2025, federal, state and local governments are projected to finance 47% of national health spending, a slight increase from 46% in 2015.

Additional findings relating to the total national health spending growth, Medicare, private health insurance, Medicaid, medical price inflation, prescription drug spending, and the insured share of the population, were also reported.

To read the full report, click here. To read CMS’ news release, click here.