DataPoint: National Health Expenditures

Total nationwide health care spending grew 3.9 percent in 2017, which was almost 1 percent slower than 2016 growth, according to a Centers for Medicare and Medicaid Services (CMS) study. The 3.9 percent growth in overall health spending was slower than the economy’s 4.2 percent overall growth in 2017. During 2017, spending on nursing care facilities and continuing care retirement communities (CCRCs) increased by 2 percent, down from the 3.1 percent spending growth of 2016. Home health care spending increased 4.3 percent in both 2016 and 2017. Medicare spending, which represents 20 percent of total health care spending, grew 4.2 percent to $705.9 billion in 2017 after a similar growth of 4.3 percent in 2016. In contrast, Medicaid spending (17 percent of total health care spending) growth slowed from 4.2 percent in 2016 to 2.9 percent in 2017. Medicaid spending was unlike prior years because states were required to fund 5 percent of the costs of the Medicaid expansion population for the first time. Consequently, state and local Medicaid spending grew 6.4 percent, while federal Medicaid spending increased 0.8 percent. In nursing care facilities and CCRCs, Medicaid spending as a percentage of overall health care spending has declined in 14 consecutive years beginning in 2003. Out-of-pocket spending grew 2.6 percent to $365.5 billion in 2017, representing a slower increase than the prior year’s 4.4 percent growth. Similarly, private businesses' spending on health care grew slower in 2017 (4.1 percent) than in 2016 (5.5 percent).

To view the full CMS National Health Expenditure file, click here.

Contact: Ken Allison, kallison@leadingageny.org, 518-867-8820