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How much is health spending expected to grow?

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Presentation on theme: "How much is health spending expected to grow?"— Presentation transcript:

1 How much is health spending expected to grow?

2 U.S. health care spending per capita has risen at historically low rates recently, but is expected to pick up Average annual growth rate of health spending per capita for 1970’s – 1990’s; Annual change in actual health spending per capita 2000 – 2014 and projected health spending per capita (2015 – 2024) Source: Kaiser Family Foundation analysis of National Health Expenditure (NHE) data from Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group Note: 2015 projected growth rates are calculated using data from “NHE Projections tables”

3 Growth in prescription spending had slowed, but increased rapidly in 2014 and 2015
Average annual growth rate of prescription drug spending per capita for 1970’s – 1990’s; Annual change in actual prescription drug spending per capita 2000 – 2014 and projected prescription drug spending per capita Source: Kaiser Family Foundation analysis of National Health Expenditure (NHE) Historical ( ) and Projected ( ) data from Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group (Accessed on December 7, 2015) Note: 2014 to 2015 percent changes are calculated using 2014 and 2015 projected amounts.

4 Per capita out-of-pocket spending grew slowly in 2014, but may pick up again starting in 2015
Average annual growth rate of health spending per capita for 1970’s – 1990’s; Annual change in actual health spending 2000 – 2014 and projected health spending (2015– 2024) Source: Kaiser Family Foundation analysis of National Health Expenditure (NHE) data from Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group. Note: 2015 projected growth rates are calculated using data from “NHE Projections tables”

5 Out-of-pocket spending on hospital care fell in 2014, but grew for Rx drugs
Actual per capita out-of-pocket health spending 2000 – 2014, and projected per capita out-of-pocket health spending (2015 – 2024) on hospitals, physicians and clinics, and retail prescription drugs Source: Kaiser Family Foundation analysis of National Health Expenditure (NHE) Historical ( ) and Projected ( ) data from Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group (Accessed on December 7, 2015)

6 An annual percentage point difference in growth rates makes a very large difference in spending over time Projected annual change in U.S. per capita health spending 2015– 2024, alternative scenarios Source: Kaiser Family Foundation analysis of National Health Expenditure (NHE) data from Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group

7 Health spending projections are now lower than previous projections
CMS projections of national health expenditures, in US $ billions, predicted based on baseline year Source: Kaiser Family Foundation analysis of National Health Expenditure (NHE) data from Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group

8 Long-term health spending is difficult to project
CMS projections of national health expenditures, predicted based on baseline year Source: Kaiser Family Foundation analysis of National Health Expenditure (NHE) data from Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group


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