Therefore, federal spending surpassed that of the previous most important purchasing segment, private homes, a category that includes consumer insurance premiums and out-of-pocket medical expenses. This represents a change from four or six years ago, when annual gains in GDP and health spending ranged between 3.5 and 4.1 percent, according to a new CMS study. According to a report by the Medicare Payment Advisory Commission (Medpac), Medicare is the largest single purchaser of health care in the United States. According to CMS researchers, rising prescription drug costs are helping to drive increased healthcare spending, as is the recent increase in the number of Americans covered by health insurance programs.
The Centers for Medicare and Medicaid Services (CMS) released the latest figures from the national survey of health expenditures, which since 1960 has provided an annual overview of this expenditure. Health care spending in the United States is increasing at a faster rate than the country's economic growth, which increased about 3.7 percent last year. Drug spending for federal health programs has continued to increase, even after the sudden increase in expensive hepatitis C drugs. The findings come at a time when Republicans are preparing plans to reduce the government's role in ensuring health care for Americans.
