CMS: Healthcare spending to reach nearly $7.2 trillion by 2031

Editor's Note

This study from the Centers for Medicare and Medicaid Services (CMS) Office of the Actuary (OACT) estimates that US healthcare spending will grow by 5.4% per year on average from 2022 to 2031, now that the COVID-19 public health emergency has ended.

Rising from $4.4 to $7.17 trillion, the increase will outpace the estimated annual gross domestic product growth of 4.6%.

Hospital spending is projected to increase by an average of 5.8% per year, and spending on prescription drugs by 4.6%.

Spending in Medicare is expected to grow the fastest among major insurers, increasing by 7.5% annually on average. Baby Boomers aging into Medicare will have a major impact on spending, the CMS OACT researchers say.