2014 National Health Expenditures Released
Monday, December 07, 2015
On December 2, 2015, the Centers for Medicaid & Medicare (CMS) released the national health expenditures for 2014 as studied by the Office of the Actuary at CMS. Overall, U.S. health care spending grew 5.3 percent reaching over $3 trillion or $9,523 per person.
- Total private health insurance expenditures (33 percent of total health care spending) reached $991 billion;
- Medicare spending (20 percent of national health spending) grew 5.5 percent to $618.7 billion;
- Medicaid spending (16 percent of national health spending) grew 11 percent to $495.8 billion;
- Out-of-pocket spending (includes co-payments, deductibles, spending not covered by insurance, excluding premiums) grew 1.3 percent to $329.8 billion;
- Retail prescription drug spending grew 12.2 percent to $297.7 billion; and
- Households and the federal government accounted for the largest shares of spending (both at 28 percent), followed by private businesses at 20 percent and state and local governments (both at 17 percent). The federal government share increased from 26 percent (2013) due mainly to Medicaid expansion and health insurance premium tax credits.
The report concludes the increase in spending growth from 2013 was primarily driven by millions of new people with health insurance coverage as a result of the Affordable Care Act and by rapidly rising prescription drug costs.
Additional highlights from the study can be read here as well as an article,"National Health Spending in 2014: Faster Growth Driven by Coverage Expansion and Prescription Drug Spending" published by Health Affairs on December 2, 2015.