The US has been on a journey for the last several years to reduce the cost of healthcare. In 2017, the percent of gross domestic product attributed to healthcare goods and services was at 17.9%. This is expected to reach as much as 19.4% by the year 2027.1 Factors contributing to this include an increase in healthcare goods and services prices of 2.5% versus the 1.1% during 2014 to 2017.2 The average annual spend growth for healthcare is estimated at 5.5% for the years 2017 to 2027, and for Medicare specifically, an average annual spend growth of 7.4% is anticipated during the same period 1, 2 (Figure 1 below).
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