CMS: U.S. health spending projected to grow 5.4% annually over decade

National health expenditures are projected to grow an average 5.4% annually during 2019-2028, outpacing average projected growth in gross domestic product by 1.1 percentage points, the Centers for Medicare & Medicaid Services’ Office of the Actuary reported yesterday in Health Affairs. Average annual Medicare spending (7.6%) is expected to exceed that in Medicaid (5.5%) and private health insurance (4.8%) as baby-boomers continue to age into the program, the agency said. Prices for medical goods and services are projected to grow an average 2.4% per year, largely reflecting faster expected growth in health-sector wages. CMS projects annual growth in spending for hospital care will increase from 5.1% in 2020 to 6.0% between 2024 and 2028, driven by inflation and growth in Medicaid and Medicare enrollment. The projections do not factor in the current COVID-19 public health emergency