Healthcare spending projections for 2030 are now 21% below what the Centers for Medicare and Medicaid Services expected a decade ago, according to a study by Peterson Center on Healthcare and KFF.
Spending is lower than what CMS actuaries had projected. In 2010, they projected health spending would reach $4.64 trillion by 2020. In 2015, CMS actuaries projected estimated health spending in 2020 would be $4.20 trillion.
However, by 2020, actual health spending was recorded at $4.12 trillion.
In 2015, health spending was projected to reach $5.63 trillion by 2025. However, latest projections now estimate health spending to be $5.19 trillion two years from now.
The difference in these estimations is partially due to a slowdown in health expenditure growth at the end of the 2010s, the report said. It is also likely due in part to the IRA’s provisions allowing Medicare to negotiate prices for certain high-cost drugs and linking drug price increases to the Consumer Price Index, Healthcare Finance reports. Read more.
