Health Spending as Share of GDP Drops

Spending on healthcare as a share of GDP in 2012 dropped since 1997, according to the federal government.  The drop from 17.3 percent of GDP in 2011 to 17.2 percent in 2012 was due to the fact that the economy grew at a 4.6 percent rate.

In 2012, healthcare spending rose 3.7 percent over 2011.  According to data from CMS, the rate of increase in spending has been between 3.6 percent and 3.8 percent annually since 2009, the slowest recorded growth rate.

CMS states that the faster growth in 2012 in spending on hospital services and physician and clinician services was offset by slower rates of growth in prescription drug prices and nursing home services.  The increase was also due to more out-of-pocket spending by consumers and increased cost sharing for physicians and clinical services.

Nursing care facilities and continuing care retirement communities saw a 1.6 percent increase in 2012, as opposed to a 4.3 percent increase in 2011 which was largely due to the reduction of Medicare payments to LTC facilities.

Officials have yet to predict how the ACA will affect spending rates this year.

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One thought on “Health Spending as Share of GDP Drops

  1. Pingback: Monday Morning Recap | hmsabc

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