Published By : 03 Dec 2015 | Published By : QYRESEARCH
Healthcare spending in the United States went up 5.30 per cent in 2014 to touch US$ 3 trillion, yet another indication that the historic slump in medical inflation might be coming to an end, according to a new federal report.
Officials said that the rapid growth in spending on specialty drugs and the massive insurance coverage expansion under the health law drove the increase in medical costs. On an average, the annual health care spending was 3.7 per cent during the past five years.
The per capita expenditure on health care in the United States in 2014 was US$ 9,523. This spending includes Medicaid, Medicare, and private health insurance. This figure is much higher compared to other developed nations. Health care expenditure in the US now comprises 17.50 per cent of the national economy.
As far as medical spending is concerned, experts are not forecasting another double digit rise. However, the most recent trends illustrate how difficult it will be for employers, policymakers, and insurers to curb health care costs in the future.
This upswing could result in further pressuring American employees. As employers transfer an increasing amount of health care costs onto the workers, deductibles and health insurance premiums will keep biting off a larger chunk of the employees’ paychecks.
An economist at the Centers for Medicare and Medicaid Services, Anne Martin said that the two chief forces behind the surge in health care spending last year were faster growth in spending on prescription drugs and health care coverage expansion linked with the Affordable Care Act.
Martin added that it is still not known how these health care spending boosters are likely to impact trends over the coming years because the landscape of health insurance continues to change.
The percentage of Americans with health care insurance was 88.80 per cent last year, which was the highest since 1987.