National Health Expenditure Projections, 2019-28: Expected Rebound In Prices Drives Rising Spending Growth

Health Aff (Millwood). 2020 Apr;39(4):704-714. doi: 10.1377/hlthaff.2020.00094. Epub 2020 Mar 24.

Abstract

National health expenditures are projected to grow at an average annual rate of 5.4 percent for 2019-28 and to represent 19.7 percent of gross domestic product by the end of the period. Price growth for medical goods and services is projected to accelerate, averaging 2.4 percent per year for 2019-28, which partly reflects faster expected growth in health-sector wages. Among all major payers, Medicare is expected to experience the fastest spending growth (7.6 percent per year), largely as a result of having the highest projected enrollment growth. The insured share of the population is expected to fall from 90.6 percent in 2018 to 89.4 percent by 2028.

Keywords: Cost growth; Costs and spending; Health policy; Medicaid; Medicaid services; Medicare; National health expenditures; Prescription drugs; Private health insurance; Wellness.

MeSH terms

  • Aged
  • Forecasting
  • Gross Domestic Product
  • Health Expenditures*
  • Humans
  • Insurance, Health
  • Medicare*
  • United States