U.S. healthcare spending at historic lows

U.S. healthcare spending grew at the slowest rate on record since 1960, according to a report from the Office of the Actuary at the Centers for Medicare & Medicaid Services (CMS).

In 2013, the U.S. spent $2.9 trillion on healthcare, which represented an increase of 3.6 percent over 2012. The report also showed health spending continued a pattern of low growth between 3.6 percent and 4.1 percent for five consecutive years.

In other findings:

• Medicare spending, which represented 20 percent of national health spending in 2013, grew 3.4 percent to $585.7 billion, a slowdown from growth of 4 percent in 2012.
• Spending on private health insurance premiums reached $961.7 billion in 2013, and increased 2.8 percent, slower than the 4 percent growth in 2012.
• Medicaid spending grew 6.1 percent in 2013 to $449.4 billion, an acceleration from 4 percent growth in 2012. 
• Out-of-pocket spending grew 3.2 percent in 2013 to $339.4 billion, slightly slower than annual growth of 3.6 percent in both 2011 and 2012.
• Hospital spending increased 4.3 percent to $936.9 billion in 2013 compared to 5.7 percent growth in 2012. 
• Spending for physician and clinical services increased 3.8 percent in 2013 to $586.7 billion, from 4.5 percent growth in 2012. 
• Retail prescription drug spending accelerated in 2013, growing 2.5 percent to $271.1 billion, compared to 0.5 percent growth in 2012.

"This report is another piece of evidence that our efforts to reform the healthcare delivery system are working. To keep this momentum going, we are continuing our efforts to shift toward paying for care in ways that reward providers who achieve better outcomes and lower costs," said CMS Administrator Marilyn Tavenner in a statement.

Read the report.