The Centers for Medicare & Medicaid Services ( CMS ) have released new estimates for health care spending over the next decade , with total health care spending tipped to reach $ 1 trillion by the end of 2017 . The estimates that a 4.6 percent increase in 2017 will outstrip the health costs rise of 2016 which reached 4.3 percent . CMS ’s report also continues its 2016 prediction that growth in health care spending will outstrip GDP by a single percentage point up until 2026 to eventually account for 19.7 percent of GDP by 2026 . Alongside this , Medicare spending is expected to increase markedly as more of the baby boomer generation becomes eligible for coverage , with a shift away from private insurance and an annual increase of up to 7.4 percent . It should be noted , however , that although the report accounts for Republican budget impacts , it does not factor in the bipartisan spending deal recently passed . Spending in private insurance is expected to rise by 4.7 percent , a growth slowdown caused by an increase in enrollment in high - deductible health plans and the repeal of the individual mandate . People enrolled in high-deductible plans through their employers are more likely to skip on healthcare, including preventive screenings that are required to be free under the Affordable Care Act. Additional expectations include a continued and significant rise in drug prices and the continued un - insurance of young and healthier people .
The Centers for Medicare & Medicaid Services ( CMS ) have released new estimates for health care spending over the next decade , with total health care spending tipped to reach $ 1 trillion by the end of 2017 . The estimates that a 4.6 percent increase in 2017 will outstrip the health costs rise of 2016 which reached 4.3 percent . CMS ’s report also continues its 2016 prediction that growth in health care spending will outstrip GDP by a single percentage point up until 2026 to eventually account for 19.7 percent of GDP by 2026 . Alongside this , Medicare spending is expected to increase markedly as more of the baby boomer generation becomes eligible for coverage , with a shift away from private insurance and an annual increase of up to 7.4 percent . It should be noted , however , that although the report accounts for Republican budget impacts , it does not factor in the bipartisan spending deal recently passed . Spending in private insurance is expected to rise by 4.7 percent , a growth slowdown caused by an increase in enrollment in high - deductible health plans and the repeal of the individual mandate . Additional expectations include a continued and significant rise in drug prices and the continued un - insurance of young and healthier people .