According to new federal actuaries projections, annual health care spending in the United States is projected to reach $7.7 trillion by 2032, marking a $2.9 trillion increase from last year. Spending is expected to grow 5.6% annually during the 2023-2032 projection period, surpassing the anticipated 4.3% annual inflation rate. By 2032, healthcare will account for nearly 20% of GDP, up from 17.3% in 2022, the actuaries said.
In addition to these projections, it has been announced that health care spending and health insurance enrollment trends are expected to be influenced by provisions enacted in response to the COVID-19 public health emergency from 2023-2032. For example, Medicaid enrollment is expected to decrease from its peak of 91.2 million in 2023 to 79.4 million in 2025, following the expiration of the continuous enrollment requirement of the Families First Coronavirus Response Act of 2020.
It has also been stated that Medicare has the highest projected ten-year average spending growth rate due to enrollment into the program among major payers. Out-of-pocket spending is also expected to slow during the years between 2018 and
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