US health spending estimated to reach nearly $6 trillion in 8 years

National health spending is projected to grow 5.5 percent on average annually and reach nearly $6 trillion by 2027, according to federal estimates published in Health Affairs.

The estimates come from a report by the CMS Office of the Actuary.

Five other findings from the report:

1. National health spending will represent 19.4 percent of gross domestic product in 2027, compared to 17.9 percent in 2017.

2. Federal government officials largely attribute the national health spending growth from 2018 to 2027 to economic factors, such as growth in income and employment, and demographic factors, such as baby boomers continuing to transition from private insurance into Medicare.

3. Prices for healthcare goods and services are projected to grow 2.5 percent on average annually for 2018 to 2027, up from 1.1 percent from 2014 to 2017.

4. Average annual spending growth in Medicare (7.4 percent) is expected to surpass Medicaid (5.5 percent) and private health insurance (4.8 percent) from 2018 to 2027. Federal officials said this is mostly due to comparatively higher projected enrollment growth. 

5. The insured share of the population is expected to stay at about 90 percent through 2027.

Read more about the report here.

 

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3 hospital revenue cycle leaders predict how price transparency will affect healthcare

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