CHA News Article

CMS Office of the Actuary Projects 2017-26 National Health Expenditures

Earlier this month, the Centers for Medicare & Medicaid Services Office of the Actuary released projected national health expenditures for 2017-26. According to the report, national health expenditure growth is expected to average 5.5 percent annually through 2026. The report also projects that, by 2026, federal, state and local governments will finance 47 percent of national health spending, up from 45 percent in 2016.

The report shows that 2017 health expenditure growth increased slightly over 2016, from 4.3 percent to 4.6 percent. The increase is attributed to accelerated Medicare spending, slightly faster growth in prices for health care goods and services, and increases in premiums for insurance purchased through the marketplaces. In 2018, total health spending is projected to grow by 5.3 percent, driven partly by growth in personal health care prices.

These projections are constructed using a current-law framework and include major health provisions from the Tax Cut and Jobs Act and funding throughout the projection period for the Children’s Health Insurance Program. The projections do not reflect other health provisions from the Bipartisan Budget Act of 2018.