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CMS Office of the Actuary releases 2016 national health expenditures

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In 2016, overall national health spending increased 4.3% following 5.8% growth in 2015, according to a study by the Office of the Actuary at CMS. Following Affordable Care Act coverage expansion and significant prescription drug spending growth in 2014 and 2015, health care spending growth decelerated in 2016.

In 2016, overall national health spending increased 4.3% following 5.8% growth in 2015, according to a study by the Office of the Actuary at CMS. Following Affordable Care Act coverage expansion and significant prescription drug spending growth in 2014 and 2015, health care spending growth decelerated in 2016. The report concludes that the 2016 expenditure slowdown was broadly based as growth for all major payers (private health insurance, Medicare, and Medicaid) and goods and service categories (hospitals, physician and clinical services, and prescription drugs) slowed in 2016. Retail prescription drug spending slowed in 2016, increasing 1.3% to $328.6 billion. The slower growth in 2016 follows 2 years of significant growth in 2014 and 2015, 12.4% and 8.9%, respectively. This significant growth in 2014 and 2015 was largely attributable to increased spending on new medicines and price growth for existing brand-name drugs, particularly for drugs used to treat hepatitis C. Growth slowed in 2016 primarily due to fewer new drug approvals, slower growth in brand-name drug spending as spending for hepatitis C drugs declined, and a decline in spending for generic drugs as price growth slowed.

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https://www.cms.gov/Newsroom/MediaReleaseDatabase/Press-releases/2017-Press-releases-items/2017-12-06.html

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