Health Care Spending Analysis

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The National Health Care Spending in the United States Beverly Faison HCS440 May 13, 2013 Bruce Nave The National Health Care Spending In the United States The National Health Expenditure Accounts (NHEA) is the official estimates of total health care spending in the United States. Dating back to 1960, the NHEA measures annual U.S. expenditures for health care goods and services, public health activities, government administration, the net cost of health insurance, and investment related to health care. The data are presented by type of service, sources of funding, and by type of sponsor. U.S. health care spending grew 3.9 percent in 2011, reaching $2.7 trillion or $8,680 per person. As a share of the nation's Gross Domestic Product, health spending accounted for 17.9 percent, the same share as 2010 and 2009 (Historical). Opening day for national health spending analysis comes every year in early January, when the actuarial team at the Centers for Medicare and Medicaid Services (CMS) throws out the first ball of figures to Health Affairs readers. This also triggers several early rounds of rear-view…show more content…
As economic conditions are anticipated to gradually improve during this period, private health insurance spending is projected to grow 3.5 percent on average. However, this growth in private health insurance spending is dampened somewhat by continued consumer cost sensitivity related to low income growth, employer efforts to control costs, and several prescription drug patent expirations. Further, Medicare spending is predicted to slow from 5.9 percent in 2012 to 1.3 percent in 2013 due to both a scheduled 30.9-percent physician payment rate reduction mandated under the Sustainable Growth Rate Formula, and an additional 2-percent payment reduction across all providers from the sequester under the Budget Control Act of

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