U.S. health spending hits $3.5T, growth slows

The nation’s health care tab hit $3.5 trillion last year, or $10,739 per person, the government reported Thursday. But the rate of growth slowed for the second year in a row, according to economic experts at the federal Health and Human Services department (Source: “Report: US health spending hits $3.5T but growth slows,” Associated Press, Dec. 6, 2018).

Health care spending increased by 3.9 percent in 2017, following a 4.8 percent increase in 2016, according to data released by the Office of the Actuary at the Centers for Medicare and Medicaid Services. Private insurance spending grew more slowly in 2017, and so did Medicaid, while Medicare costs grew at about the same rate. The overall economy grew faster than health spending.

In recent years, insurance coverage expansion under the ACA and large increases in prescription drug spending had led to faster growth. But the report found a slight dip in coverage last year and a minimal increase in prescription drug spending, less than half of 1 percent. It was the slowest increase in drug costs since 2012.

“For a health sector that now accounts for nearly one-fifth of the US economy, future increases in health care expenditures will likely lead to policy decisions focused on affordability and sustainability,” the report concluded.