National Health Spending Growth Projected at 5.4% Annually through 2028

HealthLeaders Media March 24, 2020
John Commins

However, new estimates from federal actuaries do not project the cost implications of the coronavirus pandemic.

KEY TAKEAWAYS

– Healthcare spending growth is projected to be driven primarily by healthcare sector wage growth and an expected rebound in the prices for medical services and goods.

– Personal healthcare prices are expected to increase at an average rate of 2.4% during 2019–28 and to account for 43% of the total projected growth in personal healthcare spending over the period.

– Medicare’s annual spending growth of 7.6% will outstrip Medicaid (5.5%) and private health insurance (4.8%), mostly because of higher enrollment throughout the decade as baby boomers continue to retire.

National health spending growth is expected to average 5.4% annually through 2028,...

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