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Health care costs 101: US spending growth relatively steady in 2018
Health care costs 101: US spending growth relatively steady in 2018
- Collection:
- Health Policy and Services Research
- Author(s):
- Wilson, Katherine, author
- Contributor(s):
- California HealthCare Foundation, issuing body.
- Publication:
- [Oakland, California] : California Health Care Foundation, May 2020
- Language(s):
- English
- Format:
- Text
- Subject(s):
- Health Expenditures -- statistics & numerical data
Health Expenditures -- trends
Insurance, Health -- economics
United States - Genre(s):
- Technical Report
- Abstract:
- Health Care Costs 101: US Spending Growth Relatively Steady in 2018 provides a detailed look at national health care spending in 2018, as well as projections for the next decade. Please note that these projections were made before the onset of the COVID-19 pandemic. National health spending growth accelerated in 2018, with total US health spending exceeding $3.6 trillion. That translates to $11,172 of health spending per person, more than twice the rate of most other developed countries. Health spending accounted for 17.7% of the economy in 2018, down slightly from 17.9% due to strong economic growth. Looking ahead, national health spending is projected to grow at an average rate of 5.4% per year from 2019 to 2028, faster than the economy's 4.3% projected growth. By 2028, health care spending is expected to reach $6.2 trillion and account for nearly one-fifth of GDP. KEY FINDINGS INCLUDE: (1) Medicare spending is projected to increase as the population ages--it accounted for $1 in $5 spent on health care in 2018 and will account for $1 in $4 spent on health care in 2028. (2) Public health insurance, including Medicare and Medicaid, paid 41% of the health bill in 2018. Private insurance paid 34%, and consumers' out-of-pocket spending accounted for 10%.(3) The "net cost of health insurance" was the fastest-growing category of spending, both in 2018 (13.2%) and as measured by its 20-year average (8.6%). This category accounts for 7% of spending. (4) Prescription drug spending totaled $335 billion in 2018 and grew 2.5%, as compared to 1.4% in 2017. While drug prices decreased in 2018, the number of prescriptions dispensed increased. (5) Households and the federal government each accounted for 28% of health spending in 2018. Private business accounted for 20%. (6) Federal subsidies for ACA marketplace (individual coverage) premiums and cost sharing totaled $51 billion, accounting for 5% of federal health spending.
- Copyright:
- Reproduced with permission of the copyright holder. Further use of the material is subject to CC BY-NC-ND license. (More information)
- Extent:
- 1 online resource (1 PDF file (50 pages))
- Illustrations:
- Illustrations
- NLM Unique ID:
- 101771881 (See catalog record)
- Permanent Link:
- http://resource.nlm.nih.gov/101771881