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 today released the Health Plan Accountability Update for the third quarter of 2025. The update covers the latest developments in Medicare…
Headline
A JAMA study published yesterday analyzed the health characteristics of individuals projected to lose Medicaid coverage due to work requirements included in…
Headline
The Centers for Medicare & Medicaid Services Sept. 30 released guidance to states clarifying its interpretation of a provision that…
Headline
President Trump today announced the first agreement with a major pharmaceutical company, Pfizer, to bring American drug prices in line with the lowest paid by…
Headline
An AHA blog published Sept. 16 highlights programs and practices by Boston Medical Center leaders and staff that support residents’ mental health, emotional…
Headline
Susan Doherty, AHA’s vice president of field engagement, and Rebecca Chickey, AHA’s senior director of behavioral health services, write on the unique ways…