The nation’s health spending continues to grow more slowly than before health reform, figures that the Centers for Medicare & Medicaid Services (CMS) released today show. Total health spending by governments, private insurers, and individuals grew by 5.3 percent last year, well below the average 6.9 percent increase in the ten years before health reform.
Health spending growth in 2014 outpaced 2013’s 2.9 percent rate for two major reasons:
The uptick in health spending growth in 2014, when health reform’s major coverage expansions kicked in, isn’t news. For several years analysts have expected an increase in 2014 of roughly the amount reported today.
Moreover, the expansion of health coverage slowed the growth in consumers’ out-of-pocket health spending, from 2.1 percent in 2013 to 1.3 percent in 2014. And households’ total health spending, including insurance premiums, fell as a share of national health spending.