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Dec 20, 2021
In 2020, US healthcare spending crossed $4.1 Trillion. Every 20 cents on a dollar (or 19.7%, to be precise) now goes to healthcare.
That's an increase of 9.7%, more than twice the rate in 2019 (at 4.3%). It's not surprising that the acceleration was mostly due to COVID-19 pandemic. The biggest contributor: federal government, which spent over a third more on healthcare in 2020, compared to barely six percent growth in 2019.
In contrast, gross domestic product (GDP) fell 2.2%, the largest drop since WWII.
(Source: Health Affairs; data: CMS.gov)
Figure: Increase in US healthcare spending in 2020
Jun 01, 2018
The 2018 US census data show that expenses will keep rising much faster than inflation and growth in personal income (this projection got a curveball of the COVID-19 pandemic–as 2020 above suggest). That supports the arguments of an unsustainable healthcare system. Already healthcare expenditure is close to 20% of the GDP. The can is kicked down the road, but for how long? (data: www.CMS.gov).
Figure: US percentage growth of healthcare expense compared to rise in incomes and inflation
May 01, 2018
As the American population ages, there will be more Medicare recipients (i.e., people of age 65+ years). That means future policy decisions will be heavily influenced by this age group, as their health priorities change with age related concerns. We have already started to see the impact: In 37 states, pension contributions to state-funded Medicaid grew more than their tax revenues between 2007 and 2014. Should we pay for next generation or the previous one? (data: www.census.gov.)
Figure: US population of 65+ years old (Medicare recipients) and their percentage of the total US population
Apr 30, 2018
US Healthcare expense data as a percent of GDP. Every fifth dollar spent is already going to healthcare, and increasing faster than cost of living every year. (data: CMS.gov.)
Figure: US healthcare expense as a percent of GDP
Apr 29, 2018
In 2018, the US per person healthcare expense projection was $11,193 almost one-fifth of per capita GDP (18.2% of $61,467). By 2025, the expectation is that it will rise to 19.4%. Data from www.CMS.gov. However, the pandemic has perturbed this trend: In 2020, it's already risen to 19.7%, hitting $12,250 for every American and to $4.1 Trillion for the nation (as shown by 2020 data on the top).
Figure: US per person healthcare expense