In its annual report published Dec 3, 2014, the Office of the Actuary (OACT) reported a slow rate of growth in health spending in 2013. Health spending grew at a rate of 3.6 percent in 2013, totaling $9,255 per person. This increase continues a pattern of slow growth (between 3.6 and 4.1 percent) that has continued over the past five years. Other report highlights include:
- Medicare spending growth slowed in 2013. Last year’s growth of 3.4 percent is significantly lower than the 4.0 percent growth experienced in 2012. This slowdown is attributed to deceleration in Medicare enrollment growth as well as the ACA and sequestration.
- Private insurance premiums increased by 2.8 percent, down from the 4.0 percent growth in 2012.
- Medicaid spending increased by 6.1 percent in 2013, a substantial increase from the 4.0 percent growth in 2012.
- Spending for physician services increased by 3.8 percent in 2013. This is slower than the 4.5 percent growth in 2012. This change was attributed to slower price growth – specifically spending by private health insurance and Medicare.
The complete report is available on the CMS website and CMS published a detailed press release with highlights from the report. An article about the study, including analysis, is available on the Health Affairs website.
