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DataPoint: 2018 National Health Expenditures

Total national health care spending grew to $3.6 trillion in 2018, representing a 4.6 percent increase, according to a Centers for Medicare and Medicaid Services (CMS) study. Health spending as a percentage of the total economy decreased from 17.9 percent in 2017 to 17.7 percent in 2018. Nursing care facilities and Continuing Care Retirement Communities (CCRCs) represented 5 percent of total health spending. Total 2018 spending for freestanding nursing care facilities and CCRCs increased to $168.5 billion, but at a slower rate, growing by 2 percent in 2017 and 1.4 percent in 2018. The slower nursing care facility growth is partially attributable to a decline in Medicaid spending. Home health care, which represents 3 percent of health care spending, increased by 5.2 percent in 2018 to $102.2 billion.

Medicare spending, which grew by 6.4 percent to $750.2 billion, had the largest annual growth of all major health care funding sources. 2018 Medicaid spending accounted for 16 percent of total health care spending and increased by 3 percent to $597.4 billion. Out-of-pocket spending grew by 2.8 percent to $375.6 billion in 2018, which was faster than the 2.2 percent growth in 2017.

State and local government health care spending decelerated in 2018, increasing by 2.5 percent after growing by 3.6 percent in 2017. The deceleration in 2018 was largely driven by slower growth in state and local Medicaid spending. Employer-sponsored premiums, which represent 77 percent of private business health care spending, increased by 7.2 percent in 2018.

To view the full CMS National Health Expenditures file, which provides both government payer and private expenditures, click here.

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