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Healthcare spending may show signs of moderating starting next year, but the trendline will continue its sharp upward climb nonetheless, according to new numbers released by the Centers for Medicare & Medicaid Services (CMS) in Health Affairs. Overall, expect annual spending to reach $5.6 trillion this year, eventually climbing to $8.6 trillion by 2033. Health spending will likely consume 20.3% of GDP by 2033. Growth in 2024 is projected at 8.2%, followed by 7.1% growth for this year, with 5.6% growth forecasted in each of the next several subsequent years. CMS leaders project slower growth starting in 2026 because of anticipated reductions in Americans with insurance coverage and also because of relative utilization decreases after recent utilization highs, the authors say.
Year Total U.S. Healthcare Spending
- 2022 ~$4.5 trillion
- 2023 ~$4.9 trillion
- 2024 ~$5.2 trillion (projected)
- 2025 ~$5.6 trillion (projected)
- 2027 ~$6.2 trillion (projected)
- 2033 ~$8.6 trillion (projected)
May I see your insurance card? The Congressional Budget Office estimates that the uninsured rate will increase from 7.2% in 2023 to 8.9% by 2034, which equates to approximately 32 million Americans losing insurance coverage.
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