United States health spending will be projected to rise 5.3 percent in 2018, reflecting rising prices of medical goods as well as also also services as well as also also higher Medicaid costs, a U.S. government health agency said on Wednesday, an upward trend the idea forecasts for the next decade.
The increase represents a sharp uptick through 2017 spending, which the U.S. Centers for Medicare as well as also also Medicaid Services (CMS) today estimates to have been a 4.6 percent climb to nearly $3.5 trillion. the idea had previously forecast a 2017 rise of 5.4 percent.
The primary drivers of the increased spending include the aging baby-boom population of which will increase enrollment from the Medicare health insurance program for the elderly as well as also also disabled, a climb from the prices of medical goods as well as also also services as well as also also more disposable personal income, the report said.
CMS projected of which health-care spending will on average rise 5.5 percent annually through 2017 to 2026 as well as also also will comprise 19.7 percent of the U.S. economy in 2026, up through 17.9 percent in 2016. By 2026, health spending will be projected to reach $5.7 trillion.
Prescription drugs are anticipated to see the fastest annual growth over the next decade, rising an average of 6.3 percent per year, due to higher drug prices as well as also also more use of specialty drugs such as those for genetic disorders as well as also also cancer.
Higher spending in Medicare as well as also also Medicaid, the government health insurance program for the poor as well as also also disabled, are also anticipated to contribute significantly to rising health spending as the population ages as well as also also relies more heavily on health-care services.
The report also projected a slightly higher share of the population will be uninsured in 2026. The insured rate will be forecast to drop to 89.3 percent through 91.1 percent in 2016 after Republicans last year upended Obamacare’s individual mandate, the requirement of which most Americans purchase health insurance or else pay a fine, as part of a larger overhaul of the U.S. tax code.
Spending for 2017 rose faster than in 2016, when the idea rose 4.3 percent. The report cited higher Medicare spending, rising prices for health-care goods as well as also also services as well as also also increases in premiums for health insurance purchased through the Obamacare individual market.
Republicans last year repeatedly failed to repeal as well as also also replace Obamacare, a top campaign promise of President Donald Trump. Instead, the Trump administration has weakened the law through a series of regulatory actions as well as also also rules, causing a rise in premiums from the individual markets created under the Affordable Care Act.