National health spending is projected to reach $6 trillion by 2027 and will grow 5.5 percent on average annually, according to federal estimates published in Health Affairs. The estimates come from a report by the CMS Office of the Actuary.
Though value-based care solutions get patients a better deal, healthcare spending are rising in the U.S.
These are the five findings from the report:
1. The report shows that the national health spending will represent 19.4 percent of gross domestic product in 2027, as compared to 17.9 percent in 2017.
2. Prices for healthcare goods and services are projected to grow 2.5 percent on average annually for 2018 to 2027, up from 1.1 percent from 2014 to 2017.
3. The national health sending rise from 2018 to 2027 is attributed to economic factors by federal government officials. These economic factors are growth in income and employment, and demographic factors, such as baby boomers who continue to transition from private insurance into Medicare.
4. Average annual spending growth in Medicare is expected to surpass Medicaid and private health insurance from 2018 to 2027.
5. The insured share of the population is expected to stay relatively the same over the period.