Growth in healthcare spending declined in 2004
Physician Practice Advisor, January 18, 2006
According to a study by the Centers for Medicare & Medicaid Services (CMS), the growth in healthcare spending in the U.S. slowed for the second straight year in 2004. Spending in 2004 rose 7.9%, slower than the 8.2% growth in 2003, and 9.1% growth in 2002.
The report, issued annually by CMS' Office of the Actuary, shows that healthcare spending was $1.9 trillion in 2004, or $6,280 per person.
The study suggests slower growth in prescription drug spending has contributed to slower overall spending growth over the past few years. Prescription drug spending had accounted for 23% of the growth in personal health spending between 1997 and 2000, but by 2002-2004 it accounted for only 14%.
