U.S. healthcare spending is expected to grow at an average annual rate of 5.4% from 2019 to 2028, fueled by higher prices, according to a new report. Healthcare prices are expected to increase at an average annual rate of 2.4% over that span and account for 43% of total spending growth, researchers at the CMS’ Office of the Actuary estimated. Price growth only accounted for a quarter of total expenditure growth from 2014 to 2018. The projected 5.4% clip of total healthcare spending growth—up from 4.5% in 2019—would outpace inflation by 1.1 percentage points, as it has for the last several decades. As a result, the healthcare economy would climb to $6.19 trillion in 2028, which would account for 19.7% of gross domestic product—up from $3.65 trillion in 2018, which was 17.7% of GDP. The projections do not account for the COVID-19 pandemic.
Read the full article: Healthcare Spending to Consume 20% of GDP by 2028 //
Source: https://www.modernhealthcare.com/healthcare-economics/healthcare-spending-consume-20-gdp-2028