WASHINGTON, Feb. 26 (UPI) -- U.S. healthcare spending is expected to reach $4.3 trillion and comprise 19.5 percent of gross domestic product in 10 years, a government report said.
The analysis, prepared by the Centers for Medicare and Medicaid Services, found over the full projection period -- 2007 to 2017-- annual growth in health spending is anticipated to be higher than annual growth in the overall economy at 4.9 percent and in general inflation at 2.4 percent.
The report said that growth in U.S. healthcare spending is projected to be 6.7 percent in 2007 and as a percentage of GDP, healthcare spending was projected to increase to 16.3 percent in 2007 from 16.0 percent in 2006.
Health spending growth -- via public programs -- is anticipated to drop to 6.8 percent in 2008 after the 8.2 percent growth in 2006 that was largely influenced by the implementation of the Medicare Part D drug benefit, the analysis.
Through 2017, growth in healthcare spending is expected to outpace GDP by an annual average of 1.9 percentage points.
The report is published in the journal online by the journal Health Affairs
