National health care spending grows 

WASHINGTON ­– Total national health care spending in 2019 grew 4.6%, according to a study from the Office of the Actuary at CMS. 

That’s similar to the 4.7% growth in 2018 and the average annual growth of 4.5% since 2016, according the study, which was published Dec. 16.  

The share of the economy dedicated to health spending was 17.7%. 

The 4.6% in growth in health expenditures was faster than the overall economic growth of 4% as measured by the Gross Domestic Product. 

Growth in total national health care expenditures was $3.8 trillion in 2019 or $11,582 per person, up from $2.6 trillion or $11,129 per person. 

Also from the report: 

·        Spending for personal health care, including goods and services, accounted for 84% of total health care spending in 2019 and increased 5.2%, a faster rate than 4.1% in 2018. Offsetting the faster growth was a decline in the net cost of health insurance, which declined 3.8%. 

·        Private health insurance spending increased 3.7% to $1.2 trillion. Private health insurance enrollment increased by 0.5% in 2019, as enrollment in employer sponsored insurance increased by 0.7%. 

·        Medicare spending (21% of total health care spending) grew 6.7% to $799.4 billion in 2019, slightly faster than 6.3% growth in 2018. The accelerated growth reflected faster growth in private Medicare health plan spending (39% of total Medicare spending in 2019). Fee-for-service Medicare expenditures slowed, growing 2.2%, compared to 3% in 2018. Overall, Medicare enrollment was 2.6%, the same as 2018. 

·        Medicaid spending (16% of total health care spending) increased 2.9% to $613.5 billion in 2019, similar to 3.1% growth in 2018. 

·        Retail prescription drug spending (10% of total health care spending) increased 5.7% to $369.7 billion in 2019, up from 3.8% in 2018. 

The 2019 National Health Expenditures Data and supporting information will be posted here.