Health Spending Grows Faster than GDP

U.S. health care spending grew 4.4 percent in 2008 to $2.3
million, or $7,681 per person, according to a report from CMS’
Office of the Actuary. That’s the slowest rate of growth since the
agency began tracking expenditures in 1960, analysts said,
reflecting the severity of the economic recession.

Despite the slower rate of growth, down from 6 percent in 2007,
health spending rose faster than the nation’s GDP, climbing to 16.2
percent in 2008 from 15.9 percent in 2007.

Pegged at $26.6 billion, spending on durable medical equipment
grew from 3.3 percent in 2007 to 4.1 percent in 2008.

“This report contains some welcome news and yet another warning
sign,” said Jonathan Blum, director of CMS’ Center for Medicare
Management, in a release. “Health care spending as a percent of GDP
is rising at an unsustainable rate. It is clear that we need health
insurance reform now.”

For the complete report, go to www.cms.hhs.gov/NationalHealthExpendData/02_NationalHealthAccountsHistorical.asp.