CMS: National health spending grows 5.8% in 2015

U.S. spending on health care grew 5.8% in 2015, primarily due to increased use and intensity of services as millions gained health coverage, as well as continued significant growth in spending for retail prescription drugs, the Centers for Medicare & Medicaid Services reported today in Health Affairs. Spending for prescription drugs grew 9%, faster than any other service. Health care spending per person grew 5% overall, 4.5% for private health insurance, 1.7% for Medicare, and 3.8% for Medicaid, CMS said. “As millions more Americans have obtained health insurance, per-person cost growth remains at historically modest levels,” said CMS Acting Administrator Andy Slavitt. Overall Medicaid expenditures grew 9.7%, down from 11.6% in 2014 due to slower growth in enrollment, while spending for private health insurance grew 7.2%, partly due to increased enrollment. Spending for physician and clinical services grew 6.3% and spending for hospital care grew 5.6%.