Each year, CMS actuaries project health spending growth, with recent estimates showing slower growth rates for 2024-2026. From 2027-2032, spending is expected to rise more quickly, outpacing GDP. Key factors influencing these projections include medical price growth, Medicare reforms, and uncertainties surrounding prescription drug spending. Click here for article.
Per capita health spending growth is projected to slow to 4.5% in 2024 and remain moderate through 2026.
Prescription drug spending growth will average 5.4% annually from 2026-2032 due to the Inflation Reduction Act.
Medicaid per enrollee spending will grow by 10.2% in 2024, then average 5.4% annually through 2032.
Health spending is projected to reach nearly 20% of GDP by 2032, driven by factors like inflation and workforce shortages.
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