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Healthcare Spending Will Account for Almost 20% of US Economy by 2032: CMS

U.S. healthcare spending grew faster than the economy overall last year and is expected to continue doing so through 2032 as it climbs to nearly one-fifth of gross domestic product, according to a report released Wednesday by actuaries at the Centers for Medicare and Medicaid Services and published in the journal Health Affairs.

Medicare’s actuaries project that U.S. health spending from 2023 through 2032 will grow 5.6% a year on average, outpacing expected nominal economic growth of 4.3% a year. As a result, healthcare spending is projected to swell from 17.3% of gross domestic product in 2022 to 19.7% in 2032.

For 2023, healthcare spending increased at a rapid 7.5% annual pace, even as the Covid pandemic subsided. That growth was faster than the 6.1% expansion of the economy overall, driving health outlays to a total of $4.8 trillion.

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