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Health Spending Projections: How Much Growth Should We Expect?

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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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