Particle.news
Download on the App Store

US Health Spending Reached $5.3 Trillion in 2024, Hitting 18% of GDP

CMS attributes the increase to heavier use of care in private plans alongside coverage shifts following Medicaid unwinding.

U.S. dollar banknotes and medicines are seen in this illustration taken, June 27, 2024. REUTERS/Dado Ruvic/Illustration

Overview

  • Affordable Care Act enrollment jumped more than 30% to 21.1 million as overall private coverage rose 3.5% to 214.3 million.
  • Hospital care totaled $1.6 trillion, up 8.9%, with hospital prices rising 3.4% for their fastest increase since 2007.
  • Spending on government administration grew 14.7%, including a 19.8% increase for Medicaid administration associated with eligibility redeterminations.
  • Retail prescription drug outlays reached $467 billion, up 7.9%, reflecting slower growth in prices and use than in 2023.
  • CMS reported that higher utilization and intensity of services were the primary drivers of spending growth as the insured share of the population edged down to 91.8%.