CHA News Article

Study Concludes Health Spending Is Fueled by Enrollment

The Urban Institute released the attached report last week that concludes spending growth in Medicare and Medicaid is greatly affected by enrollment. According to the study, spending on a per-enrollee basis is projected to be close to the gross domestic product growth rate per capita in the coming decade. As a result, spending growth in both programs is not “out of control.” The report further states that much of the perceived spending problem is driven by enrollment growth, and the continued projection of modest growth in spending per enrollee suggests that proposals such as premium support and block grants will have a hard time achieving better outcomes.