U.S. spending on health care grew 4.3% in 2016, down from 5.8% in 2015, primarily due to slower growth in spending for retail prescription drugs, hospital care, and physician and clinical services, the Centers for Medicare & Medicaid Services reported today in Health Affairs. Spending growth slowed for all three major payers – private health insurance, Medicaid and Medicare. For private health insurance and Medicaid, the slower growth was influenced by decelerated enrollment growth, while Medicare spending slowed because of lower per enrollee growth rates. “Over the last decade, the U.S. has experienced unique events that have affected the health care sector, including the most severe economic recession since the Great Depression, major changes to the health care system because of the [Affordable Care Act], and historic lows in medical price inflation,” said Micah Hartman, a statistician in CMS’s Office of the Actuary and lead author of the study. “In 2016, the slowdown in health care spending followed significant insurance coverage expansions under the ACA and very strong growth in retail prescription drug spending in 2014 and 2015.”

Related News Articles

Headline
The AHA has released several resources that can be used to educate members of Congress and community stakeholders about the potential effects of harmful cuts…
Perspective
Public
The House Energy & Commerce Committee in just over a week is expected to mark up its portion of the budget reconciliation bill to enact key pieces of…
Headline
A study published April 28 by Health Affairs Scholar found low-income adults living in states with Medicaid expansion experienced an average 9.5% relative…
Headline
The AHA April 30 released a report highlighting how hospitals and health systems continue to experience significant financial headwinds that can challenge…
News
The AHA April 29 urged majority and minority leaders in both the Senate and House to not make disruptive policy changes to Medicaid and other coverage options…
Perspective
Public
One year ago, a nurse at Children’s Hospital Colorado went above and beyond in a way that a very young patient and her family will never forget. Kayla…