By Alex Kacik – ModernHealthCare – March 25, 2020
Health care spending is expected to grow at an average annual rate of 5.4% from 2019 to 2028, as prices are expected to increase at an average annual rate of 2.4% over that span and account for 43% of total spending growth, researchers at the CMS’ Office of the Actuary estimated. Price growth only accounted for a quarter of total expenditure growth from 2014 to 2018. As a result, the health care economy would climb to $6.19 trillion in 2028, which would account for 19.7% of gross domestic product – up from $3.65 trillion in 2018, which was 17.7% of GDP. The government is projected to pay a larger share – nearly half – of the nation’s total health bill by 2028, as Baby Boomers continue aging into Medicare; its beneficiaries consume $1 out of every $4 spent on health care, said Sean Keehan, an economist in the Office of the Actuary and lead author of the study published in Health Affairs. Enrollment in Medicare is expected to jump to 75 million people by 2028.