Healthcare Spending to Grow 5.8% Per Year for Next Ten Years, CMS Analysis
- According to the Centers for Medicare and Medicaid (who regularly lowball the estimate) medical spending is projected to grow from 2015-2025 at an average rate of 5.8 percent per year.
- Health spending is projected to grow 1.3 percentage points faster than Gross Domestic Product (GDP) per year over this period; as a result, the health share of GDP is expected to rise from 17.5 percent in 2014 to 20.1 percent by 2025.
- Given the ACA’s coverage expansions and premium subsidies together with population aging, federal, state and local governments are projected to finance 47 percent of national health spending by 2025 (from 45 percent in 2014).
