National Health Care Spending Projections

A new report by the federal Centers for Medicare and Medicaid Services’ (CMS) Office of the Actuary projects that U.S. health care spending will increase at an average rate of 5.8% over the next decade and reach almost $4.5 trillion by 2020. Expanded Medicaid and private insurance coverage are expected to increase demand for health care significantly, particularly for prescription drugs and physician and clinical services. Also, growth in Medicare enrollment, and premium and cost sharing subsidies for exchange plans are expected to increase the federal government’s share of health care spending.