National health spending grew an estimated 4.2% in 2021, reaching almost $4.3 trillion, according to annual spending projections released by the CMS, Healthcare Dive reports. That’s a significant deceleration from the 9.7% growth rate seen in 2020, as the federal government ramped up spending to combat COVID-19, despite the increasing demand for patient care last year.
The CMS projects health spending will grow at an average rate of 4.9% between 2022 and 2024, and 5.3% between 2025 and 2030, to reach nearly $6.8 trillion by 2030.
Growth in the nation’s GDP is projected to be 5.1% annually over the same period, meaning healthcare spending will make up 19.6% of the GDP by 2030. That’s roughly the same as 2020’s share. Read more.
