US Health Care Spending to Double to $4.1 Trillion by 2016 - 20 Cents of Every 5 Dollars Spent
The study estimates health spending in 2006 at $2.1 trillion or 16 cents of every dollar spent in the U.S. economy (16% of the GDP). The new estimate is based on a 6.9% average annual growth rate in health-care spending.
- Medicaid spending is expected to reach $313.5 billion in 2006, about the same as in 2005.
- With the addition of Part D, total Medicare spending growth is expected to reach $417.6 billion in 2006, up from $342 billion the year before.
- By 2016, Medicare spending is expected to more than double, reaching $862.7 billion.
- U.S. prescription drug spending should reach $497.5 billion by 2016, more than double the expected level for 2006.
- Prescription drug spending will grow at an average annual rate of 8.6 percent until 2016.
- The cost of hospital care is expected to climb to more than $1.2 trillion by 2016, vs. $651.8 billion expected for 2006.
- In 2006, consumers are expected to spend $250.6 billion in out-of-pocket health-care costs. The total spent will reach $440.8 billion by 2016, however.
- In 2006, an individual is projected to spend $846.50 on health care. In 2016, the average spent will be $1,405.73.
- Private health insurance premiums are expected to grow 4.4 percent in 2006, down from a high of 11 percent in 2002.
- Growth in total physician and clinical spending is expected to slow from 7 percent in 2005, to 6.1 percent in 2006.
- Growth in nursing home spending is also expected to slow, from 6 percent in 2005 to 3.4 percent in 2006
- Home health spending is likely to rise 1.4 percentage points to 12.5 percent in 2006, or $53.4 billion. This would make it the fastest growing area of health care.
- US Health-Care Costs to Top $4 Trillion By 2016 - Washington Post
- Health Care Expenses to Double in 10 Years - ABC News
- Health-Care Spending in US May Be $4.1 Trillion by 2016 - Bloomberg
- Growing Share Of Health Costs - Wall Street Journal (subscription)