• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

US healthcare spending neared $5 trillion in 2023, government report says

by December 19, 2024
written by December 19, 2024

By Amina Niasse

NEW YORK (Reuters) -U.S. healthcare spending rose by 7.5% to $4.9 trillion in 2023, driven by increased use of medical services as enrollment climbed for private health plans, particularly those under the Affordable Care Act, the Centers for Medicare and Medicaid Services said in a report on Wednesday.

The agency, which oversees Medicare plans for people aged 65 and older or with disabilities, said healthcare spending outpaced U.S. economic growth. It rose by an inflation-adjusted 4.4% compared with gross domestic product growth of 2.9% in 2023, the report said.

Spending on retail prescription drugs had the biggest increase, rising 11.4% to $449.7 billion after a 7.8% rise in 2022, largely due to the use of weight-loss and diabetes drugs, a CMS official said during a press briefing.

Within the Medicare prescription drug benefit, the amount spent on diabetes medicines like the popular newer GLP-1 medicines such as Novo Nordisk (NYSE:NVO)’s Ozempic and Wegovy that are also used for weight loss, increased 35%, the official said.

“That significantly contributed to Medicare prescription drug spending growth of 12.2%,” the official added.

Healthcare represented 17.6% of the U.S. economy in 2023, slightly up from 17.4% in 2022. That portion is slightly lower than at the height of the COVID-19 pandemic, the report said.

Spending for hospital care services totaled $1.5 trillion in 2023, rising by 10.4%, the highest growth in nearly three decades. Spending on clinical services increased 7.4%.

Commercial insurers represented the largest share of spending, jumping to 30% from 19.5% in 2022, due to increased enrollment in employer-sponsored health plans and greater enrollment in ACA plans, commonly referred to as Obamacare.

The 2021 American Rescue Plan Act and 2022 Inflation Reduction Act included enhanced subsidies that reduced the cost of premiums for people enrolled in Obamacare plans. Following introduction of those policies, 2.7 million additional people signed up for Obamacare plans in 2023.

Enrollment in private health insurance increased 1.6% in 2023, representing 3.3 million Americans, CMS said.

The report found that 92.5% of Americans were covered by some form of health insurance in 2023, up from 92.0% in 2022.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Fed lowers rates but sees fewer cuts next year due to stubbornly high inflation
next post
Weedmaps co-founders propose to take company private

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Trump implies government could cut contracts and subsidies to Musk’s companies

      June 7, 2025
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (505)
    • Stock (6,426)

    Latest News

    • Trump implies government could cut contracts and subsidies to Musk’s companies
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

    Popular News

    • New Zealand central bank paints grim economic outlook
    • Earnings call: SAP reports robust Q3 2024 growth, raises outlook

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy