We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies. Cookie Policy.

Features Partner Sites Information LinkXpress
Sign In
Advertise with Us

Download Mobile App




Health Expenditure Will Constitute 20% of the U.S. Economy within a Decade

By HospiMedica International staff writers
Posted on 25 Jul 2016
Print article
A new report projects that aggregate spending on healthcare in the United States will increase by 5.8% per annum until 2025.

The report, by the U.S. Centers for Medicare & Medicaid Service (CMS, Baltimore, MD, USA), states that the average projected annual growth rate is 1.3% faster than annual growth in the gross domestic product (GDP), and as a result health expenditure is expected to increase from 17.5% in 2014 to 20.1% by 2025. CMS stressed, however, that the average still remains lower than the average growth over the previous two decades before 2008, which was nearly 8%. Overall, national health expenditures are estimated to have reached USD 3.2 trillion in 2015, or just over USD 10,000 for every man, woman, and child.

Other findings of the report are that prescription drug spending is projected to grow an average of 6.7% per year for 2016 through 2025; spending on physician and clinical services will rise by 4.5% in 2016; the insured share of the population is expected to continue to rise from 89% in 2014 to 92% by 2025; and private health insurance expenditures are estimated to have reached USD one trillion in 2015. In 2015, Medicare expenditures were USD 647.3 billion, a 4.6% increase from 2014, driven partly by increased enrollment.

The report also comments that as the initial impacts associated with the 2010 federal Affordable Care Act coverage expansions fade, growth in health spending will be influenced by changes in economic growth, faster growth in medical prices, and population aging. In addition, the share of total health expenditures paid for by U.S. federal, state, and local governments is projected to increase to 47% by 2025. The report was published in the July 2016 issue of Health Affairs.

“The Affordable Care Act continues to help keep overall health spending growth at a modest level and at a lower growth rate than the previous two decades. This progress is occurring while also helping more Americans get coverage, often for the first time,” said Andy Slavitt, acting administrator of CMS. “Per-capita spending and medical inflation also remain at historically very modest levels, demonstrating the importance of continuing to reform our delivery systems. As we look to the future we must continue our efforts that keep people healthy, providing access to affordable, quality care, while spending smarter across all categories of care delivery.”

Related Links:
U.S. Centers for Medicare & Medicaid Service


Gold Member
SARS‑CoV‑2/Flu A/Flu B/RSV Sample-To-Answer Test
SARS‑CoV‑2/Flu A/Flu B/RSV Cartridge (CE-IVD)
Gold Member
Real-Time Diagnostics Onscreen Viewer
GEMweb Live
Silver Member
Wireless Mobile ECG Recorder
NR-1207-3/NR-1207-E
New
Bilirubin Lamp
Bilibluelight

Print article

Channels

Critical Care

view channel
Image: Researchers have developed an advanced shear-thinning hydrogel for aneurysm repair (Photo courtesy of TIBI)

New Hydrogel Features Enhanced Capabilities for Treating Aneurysms and Halting Progression

Aneurysms can develop in blood vessels in different body areas, often as a result of atherosclerosis, infections, inflammatory diseases, and other risk factors. These conditions lead to chronic inflammation,... Read more

Surgical Techniques

view channel
Image: The living replacement knee will be tested in clinical trials within five years (Photo courtesy of ARPA-H)

Living Knee Replacement to Revolutionize Osteoarthritis Treatment

Osteoarthritis is the most prevalent type of arthritis, characterized by the progressive deterioration of cartilage, or the protective tissue covering the bone ends, resulting in pain, stiffness, and impaired... Read more

Patient Care

view channel
Image: The newly-launched solution can transform operating room scheduling and boost utilization rates (Photo courtesy of Fujitsu)

Surgical Capacity Optimization Solution Helps Hospitals Boost OR Utilization

An innovative solution has the capability to transform surgical capacity utilization by targeting the root cause of surgical block time inefficiencies. Fujitsu Limited’s (Tokyo, Japan) Surgical Capacity... Read more

Health IT

view channel
Image: First ever institution-specific model provides significant performance advantage over current population-derived models (Photo courtesy of Mount Sinai)

Machine Learning Model Improves Mortality Risk Prediction for Cardiac Surgery Patients

Machine learning algorithms have been deployed to create predictive models in various medical fields, with some demonstrating improved outcomes compared to their standard-of-care counterparts.... Read more

Point of Care

view channel
Image: The new eye-safe laser technology can diagnose traumatic brain injury (Photo courtesy of 123RF)

Novel Diagnostic Hand-Held Device Detects Known Biomarkers for Traumatic Brain Injury

The growing need for prompt and efficient diagnosis of traumatic brain injury (TBI), a major cause of mortality globally, has spurred the development of innovative diagnostic technologies.... Read more
Copyright © 2000-2024 Globetech Media. All rights reserved.