US healthcare spending grew 5.3% in 2014

Editor's Note

Overall US spending on healthcare grew 5.3%, and per-capita spending grew 4.5% in 2014, the Centers for Medicare & Medicaid reports.

The share of gross domestic product allotted to healthcare spending was 17.5%, up from 17.3% in 2013.

The increase in spending was primarily driven by coverage expansion associated with the Affordable Care Act and rapidly rising prescription drug costs.

Spending on prescription drugs grew by 12.2% in 2014, compared with 2.4% in 2013.

1Anne B. Martin ([email protected]) is an economist in the Office of the Actuary, Centers for Medicare and Medicaid Services (CMS), in Baltimore, Maryland. 2Micah Hartman is a statistician in the CMS Office of the Actuary. 3Joseph Benson is an economist in the CMS Office of the Actuary.