WASHINGTON, Feb. 23 (UPI) -- U.S. health officials Wednesday projected total healthcare spending for 2004 at $1.8 trillion, an increase of 7.5 percent from 2003 final figures.
The Centers for Medicare and Medicaid Services released its annual report on spending which shows the rate of spending growth has slowed a bit, compared to 2003 when it increased by 7.7 percent. The 2003 figures, however, were the first decline in the growth of healthcare spending following six years of accelerated rates.
CMS predicted the new Medicare Part D prescription drug benefit, which begins Jan. 1, 2006, will raise drug use but reduce out-of-pocket spending by seniors without causing a major increase in the health spending trend.
The growth rate of spending is expected to drop slightly through 2006 and come in at about 7.3 percent per year.
As a percentage of Gross Domestic Product, healthcare spending is expected to reach 15.4 percent in 2004, up from 15.3 percent in 2003.
