Key Healthcare Expenditure Trends
Insurance and Medicare Growth The private insurance sector saw an 11.5% increase, reaching $1.5 trillion, while Medicare spending grew by 8.1%, hitting $1 trillion. Together, these sectors represented over half of all healthcare spending in 2023.
Hospital and Clinical Services Hospital care spending surged by 10.4% to $1.5 trillion, marking the highest growth rate since 1990. Physician and clinical services increased by 7.4%, totaling $978 billion.
Pharmaceutical Spending Surge Prescription drug spending grew by 11.4% to $449.7 billion, with notable increases in obesity and diabetes medications. Medicare Part D saw a 35% increase in anti-obesity drug spending.
Driving Factors Higher utilization rates and increased insurance enrollment, particularly through marketplace plans and Medicaid, contributed significantly to the overall spending growth of 7.5%.
