CMS Projects US Health Spending in 2031 to Exceed $7.2 Trillion

In a study newly published in Health Affairs, authors use CMS figures to project US healthcare spending to exceed $7.2 trillion by 2031. This is based on an expected annual growth in spending of 5.4 percent by year. Although recent economic growth exceeded recent increases in healthcare spending, this trend is not expected to hold up long-term.

According to Alan Condon, “However, from 2022 through 2031, nominal GDP is estimated to grow 4.6 percent a year — 0.8 percentage point lower than average growth in national health expenditures — with health spending accounting for 19.6 percent of GDP by 2031, according to the report.”

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(Source: Becker’s Hospital CFO Report, June 14^th, 2023)