Overall U.S. healthcare spending increased 5.3% in 2014 to reach $3.0 trillion, according to a report from CMS’ Office of the Actuary.
The study indicated the growth experienced in 2014 was primarily attributable to major coverage expansions under the Affordable Care Act, particularly for Medicaid and private health insurance, and rapidly rising prescription drug costs.
Here are other highlights from the study:
- The United States spent $9,523 per person on healthcare in 2014.
- Healthcare spending grew 1.2 percentage points faster than the overall economy in 2014.
- Healthcare accounted for 17.5% of U.S. gross domestic product.
- Medicare spending grew 5.5% to $618.7 billion.
- Medicaid spending grew 11.0% to $495.8 billion.
- Private health insurance spending grew 4.4% to $991.0 billion.
- Out-of-pocket spending grew 1.3% to $329.8 billion.
- Prescription drug spending increased 12.2% to $297.7 billion in 2014 compared to 2.4% growth in 2013.
- Spending for hospital care increased 4.1% to $971.8 billion in 2014 compared to 3.5% growth in 2013.
- Spending on physician and clinical services increased 4.6% in 2014 to $603.7 billion compared to 2.5% growth in 2013.
- Spending for other professional services (such as physical therapy, optometry, podiatry and chiropractic medicine) increased 5.2% in 2014 to $84.4 billion compared to 3.5% growth in 2013.
- The largest shares of total health spending were sponsored by households (28%) and the federal government (28%). The private business share of health spending accounted for 20% of total healthcare spending, and state and local governments accounted for 17%.
- The Affordable Care Act allowed 8.7 million individuals to gain coverage in 2014 compared to 2013. As a result, the insured share of the population increased from 86.0 percent in 2013 to 88.8 percent in 2014.
CMS Acting Administrator Andy Slavitt said, “Today’s report reminds us that we must remain vigilant in focusing on delivering better healthcare outcomes, which leads to smarter spending, particularly as costs increase in key care areas, like prescription drugs costs.”