2015-2025 Projections of National Health Expenditures Data Released

CAL/AAEM News Service calaaem.news.service1 at gmail.com
Fri Jul 29 20:00:59 PDT 2016


       

 

July 13, 2016

 

2015-2025 Projections of National Health Expenditures Data Released 

 

 

 
<https://www.cms.gov/Newsroom/MediaReleaseDatabase/Press-releases/2016-Press
-releases-items/2016-07-13.html> Centers for Medicare and Medicaid Services

 

 

Total health care spending growth is expected to average 5.8 percent
annually over 2015-2025, according to a report published today as a 'Web
First' by Health Affairs and authored by the Centers for Medicare & Medicaid
Services' (CMS) Office of the Actuary (OACT). Projected national health
spending growth remains lower than the average over previous two decades
before 2008 (nearly 8 percent).

 

"The Affordable Care Act continues to help keep overall health spending
growth at a modest level and at a lower growth rate than the previous two
decades. This progress is occurring while also helping more Americans get
coverage, often for the first time," said CMS Acting Administrator Andy
Slavitt. "Per-capita spending and medical inflation also remain at
historically very modest levels, demonstrating the importance of continuing
to reform our delivery systems. As we look to the future we must continue
our efforts that keep people healthy, providing access to affordable,
quality care, while spending smarter across all categories of care
delivery."

 

In 2015, medical price growth is estimated to continue to be very low,
helping to restrain overall health spending growth. In addition, the
Medicare program is testing various alternative payment approaches, which
may provide some relief to long-term spending growth, even as a record
number of people age into Medicare. Overall, national health expenditures
are estimated to have reached $3.2 trillion in 2015.

Health spending is projected to grow 1.3 percentage points faster than Gross
Domestic Product (GDP) per year over 2015-2025; as a result, the health
share of GDP is expected to rise from 17.5 percent in 2014 to 20.1 percent
by 2025. Federal, state and local governments are projected to finance 47
percent of national health spending (up from 45 percent in 2014).

 

Other findings from the report:

 

       . National health spending growth is estimated to have been 5.5
percent in 2015. By 2016, slower growth in health spending of 4.8 percent is
projected as the enrollment in Medicaid and Marketplace plans slows and the
associated declines in the number of the uninsured decreases. Total annual
health care spending growth is expected to average 5.8 percent over
2015-2025.

 

       . In 2015, medical price inflation slowed to 0.8 percent, down from
1.4 percent in 2014. Hospital prices increased by 0.9 percent while price
growth in physician services fell by 1.1 percent.

 

       . The share of health expenses that Americans pay out-of-pocket is
projected to decline from 10.9 percent in 2014 to 9.9 percent in 2025.

 

       . The insured share of the population is expected to continue to rise
from 89 percent in 2014 to 92 percent by 2025.

 

       . Private health insurance expenditures are estimated to have
increased by 5.1 percent from 2014 to 2015, reaching $1.0 trillion.
Thereafter, average annual growth through 2025 is expected to be similar
(5.4 percent).

 

       . Medicaid spending growth is slowing significantly in 2016, to 5.3
percent, which the report attributes to slower enrollment growth and
stronger utilization management. Spending growth is expected to average 5.6
percent for 2017-19, lower than in 2014-15.

 

       . In 2015, Medicare expenditures are expected to have been $647.3
billion, a 4.6-percent increase from 2014, driven partly by increased
enrollment. However, per-enrollee costs are estimated to have increased by
only 2.4 percent, the same as the previous year, continuing the recent trend
of low per-enrollee cost increases. 

 

       . Prescription drug spending is projected to grow an average of 6.7
percent per year for 2016 through 2025.  This follows growth of 12.2 percent
in 2014 and 8.1 percent in 2015 when spending growth was influenced by the
introduction of expensive new specialty drugs such as those used to treat
Hepatitis C. 

 

 

 

Jeff Wells
Deputy Editor, CAL/AAEM News Service

 

Brian Potts MD, MBA
Managing Editor, CAL/AAEM News Service



Contact us at:  <mailto:calaaem.news.service1 at gmail.com>
calaaem.news.service1 at gmail.com

For more articles, visit our  <http://www.calaaem.org/news_archives.php>
archives. 

 <mailto:somcaaem at uci.edu> To
<https://maillists.uci.edu/mailman/listinfo/calaaem>  unsubscribe from this
list, visit our mail server.

Copyright (C) 2015. The California Chapter of the American Academy of
Emergency Medicine (CAL/AAEM).  <http://www.calaaem.org>
http://www.calaaem.org. All rights reserved.

CAL/AAEM, a nonprofit professional organization for emergency physicians,
operates the CAL/AAEM News Service solely as an educational resource for
physicians. Dissemination of an article by CAL/AAEM News Service does not
imply endorsement, agreement, or recommendation by CAL/AAEM News Service,
CAL/AAEM, or AAEM.



Follow CAL/AAEM on Facebook and Twitter:

 

 <http://www.facebook.com/pages/CalAAEM/172577489479442?sk=wall&filter=12>
<https://twitter.com/#!/CALAAEM>
<http://escholarship.org/uc/uciem_westjem> 

 



---
This email has been checked for viruses by Avast antivirus software.
https://www.avast.com/antivirus
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://maillists.uci.edu/pipermail/calaaem/attachments/20160729/6f739769/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 24675 bytes
Desc: not available
URL: <http://maillists.uci.edu/pipermail/calaaem/attachments/20160729/6f739769/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 877 bytes
Desc: not available
URL: <http://maillists.uci.edu/pipermail/calaaem/attachments/20160729/6f739769/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 819 bytes
Desc: not available
URL: <http://maillists.uci.edu/pipermail/calaaem/attachments/20160729/6f739769/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 1822 bytes
Desc: not available
URL: <http://maillists.uci.edu/pipermail/calaaem/attachments/20160729/6f739769/attachment-0007.jpg>


More information about the CALAAEM mailing list