Centers for Medicare & Medicaid Services (CMS) report

U.S. Health Spending Rose 7.5% to $4.8 Trillion in 2023, Outpacing 6.1% GDP Growth

Jun 12, 2024, 08:49 PM

New projections from the Centers for Medicare & Medicaid Services (CMS) indicate that U.S. national health spending grew by an estimated 7.5% in 2023, reaching nearly $4.8 trillion. This growth rate surpasses the 6.1% increase in the gross domestic product (GDP) for the same year. The report also forecasts that health care spending will continue to outpace GDP growth over the next decade, with the health share of GDP expected to reach 19.7% by 2032. In 2023, healthcare spending as a percentage of GDP increased to 17.6%, a rise of 0.3%. Hospital care spending saw a significant rise of 10.1% in 2023. The Inflation Reduction Act is anticipated to help reduce beneficiary cost sharing.