December 2, 2016
- Total per-enrollee private health insurance spending increased by 4.5 percent in 2015, compared to average growth in per-enrollee spending of 7.4 percent during 2000-2009. Overall, private health insurance expenditures (33 percent of total health care spending) reached $1.1 trillion in 2015, and increased 7.2 percent in 2015. The faster rate of growth reflected increased enrollment in private health insurance associated with coverage expansions under the Affordable Care Act, and a notable increase in the enrollment in employer-sponsored plans.
- Per-enrollee Medicare spending increased by 1.7 percent, about the same rate as in 2014 and below the average annual growth in per-enrollee spending during 2000-2009 of 7.0 percent (or 5.8 percent when Medicare Part D, which was implemented in 2006, is excluded). Medicare spending, which represented 20 percent of national total health care spending in 2015, grew 4.5 percent to $646.2 billion, slightly slower than the 4.8 percent growth in 2014 even as the leading edge of the baby boom generation joined Medicare. The 2015 rate of growth reflected mixed trends among services compared to 2014 as Medicare hospital spending growth slowed and nursing home and home health care spending grew faster. Medicare prescription drug spending continued to grow by double digits with an 11.0 percent increase in 2015 following a 14.5 increase in 2014.
- Overall Medicaid spending and enrollment grew at a slower rate in 2015 than in 2014 with per-enrollee Medicaid spending increasing 3.8 percent. Medicaid spending, which totaled $545.1 billion, accounted for 17 percent of total spending on health care. Similarly, growth in Medicaid enrollment slowed to 5.7 percent in 2015, significantly lower than the 2014 increase of 11.1 percent.
spending ($338.1 billion), which includes direct consumer payments such as
copayments, deductibles, and spending not covered by insurance, excluding
premiums, grew 2.6 percent in 2015, compared to average annual growth in
out-of-pocket spending during 2000 and 2009 of 4.6 percent. From 2008
through 2015, average annual growth of out-of-pocket spending was 1.9
percent, lower than the average annual growth in overall health spending
of 4.3 percent during that same time period. As a result, the share of
out-of-pocket spending of total health expenditures fell from 13 percent in
2007 to 11 percent in 2015.
prescription drug spending continued to outpace overall health
expenditure growth in 2015, increasing 9.0 percent to $324.6 billion after
rising 12.4 percent in 2014. Growth in prescription drug spending was
faster than that of any other service in 2015. Recent rapid growth was due
to increased spending for new medicines (particularly for specialty drugs
such as those used to treat hepatitis C), price growth in existing
brand-name drugs, increased spending on generics, and a decrease in the
number of expensive blockbuster drugs whose patents expired.
- In 2015, the federal government and households accounted for the largest shares of spending (29 percent and 28 percent respectively), followed by private businesses (20 percent), and state and local governments (17 percent).
The CMS Office of the Actuary’s report will appear on the CMS website at: https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NationalHealthAccountsHistorical.html.