Slow growth in health spending continues in 2013, CMS reports

Health spending in 2013 continued to grow slowly, at 3.6%, compared with 4.1% in 2012, according to a report issued last week by the Office of the Actuary (OACT) at the Centers for Medicare & Medicaid Services (CMS). Total national health expenditures in the United States were $2.9 trillion, or $9,255 per person.

The annual report showed that health spending growth has been relatively slow compared to historical rates, between 3.6% and 4.1%, for 5 consecutive years. The 0.5 percentage point slowdown in health care spending growth between 2012 and 2013 can be attributed to slower growth in private health insurance, Medicare, and investment in medical structures and equipment spending, the report said, but was partially offset by faster growth in Medicaid spending.

The report also found that spending for physician and clinical services increased 3.8% in 2013 to $586.7 billion, compared with 4.5% growth in 2012. The slowdown was mostly caused by slower price growth in 2013. Spending on retail prescription drugs, meanwhile, grew 2.5% in 2013 compared to 0.5% in 2012, due to price increases for brand-name and specialty drugs, more spending on new medications, and increased use, the report said.

The OACT report is available online.

A related article was published online Dec. 3 by Health Affairs.