Ilovebenefits’s Blog

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2008 Health Care Spending

Healthcare spending in the U.S. grew 4.4% in 2008 to $2.3 trillion, the slowest rate of growth in nearly 50 years, the CMS reported.

Hospital spending in 2008 grew 4.5% to $718.4 billion compared with 5.9% in 2007.

Nevertheless, 31% of the nation’s healthcare dollar went to hospital care in 2008, making up the largest percentage of spending, followed by other spending (25%) and physician and clinical services (21%).

Private insurance benefits and premiums in 2008 grew at their slowest rate since 1967, while public programs such as Medicare and Medicaid grew 6.5%, the same rate as in 2007. Retail prescription-drug spending slowed to 3.2% in 2008, reflecting a decline of per capita use of prescription medications.

Despite slower growth, however, healthcare spending continued to outpace overall economic growth, which was 2.6% in 2008 as measured by the gross domestic product.

Despite the decline in the growth rate, medical costs accounted for 16.2% of the gross domestic product, amounting to about $7,681 per person during that year, according to the report. Reuters (1/5) , The New York Times/The Associated Press (1/5) , USA TODAY (1/5)


January 5, 2010 - Posted by | drugs, healthcare, hospitals, insurance, Medicare, physicians | , , , , , , ,

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