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 a social media toolkit with sample posts and graphics encouraging people to sign up for 2026 health coverage via the Health Insurance…
Headline
Cigna’s Evernorth division Oct. 27 announced a new, rebate-free pharmacy benefit model, beginning in 2027, that would reduce monthly prescription drug costs by…
Headline
A new report from KFF reveals that Medicare Advantage enrollees had access to just 48% of the physicians available to Traditional Medicare beneficiaries in…
Headline
The median net launch price for 154 new drugs increased 51% between 2022 and 2024, after accounting for inflation and discounts, according to a report released…
Headline
Annual premiums for employer-sponsored family health coverage in 2025 increased 6% over last year to $26,993, according to KFF’s annual Employer Health…
Headline
A report by the Department of Health and Human Services Office of the Inspector General found that many Medicare Advantage and Medicaid managed care plans…