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 $3.5 trillion by the end of 2017 . CMS also projects that the repeal of the individual mandate will play a role in lowering spending for private insurance. The estimates that a 4.6 percent increase in the end of 2017 will outstrip the health costs rise of 2016 which reached 4.7 percent . CMS ’s report also continues its annual prediction that growth in health care spending will outstrip GDP by a single percentage point up until 2026 to eventually account for up to 7.4 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, driving 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 4.3 percent , a growth slowdown driven 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.
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 $3.5 trillion by the end of 2017 . The estimates that a 4.6 percent increase in the end of 2017 will outstrip the health costs rise of 2016 which reached 4.7 percent . CMS ’s report also continues its annual prediction that growth in health care spending will outstrip GDP by a single percentage point up until 2026 to eventually account for up to 7.4 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, driving 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 4.3 percent , a growth slowdown driven 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.