Healthcare Spending Statistics



The aim of this article is to present the relevant statistics on the United States' healthcare regarding financing and expenditure. These statistics are useful in the evaluation of a country's healthcare with regards to global access to quality healthcare.The statistics analyze the financial resources and the allocation process of such resources between the various beneficiaries and stakeholders in the broad health sector, for instance, healthcare providers such as hospitals and health care that is either preventive or curative.

National healthcare spending statistics

In the US, approximately 50% of medical costs are for hospital expenses, the breakdown being, hospital inpatient-30% and outpatient-19%. Prescription medication gets 17% while doctors get 30%.
In the above distribution, the amount allocated for drugs is small as compared to the overall expenditure, and as a result, there have been growing concerns over the rising cost of new medication, and this can give birth to unnecessary false alarms.
Furthermore, the Department of Health and Human Services predicts that in the coming decade, the healthcare spending will surpass that of the country's national economy. In the event of such, the federal and state governments' ability to pay will be complicated and so is for most employers and average Americans.
Growth projections are at an average of 5.8% from the year 2015 to 2025.It is below par before the 2007-2009 recession but nevertheless, faster compared to the previous years which showed healthcare expenditure fairly in balance with economic growth.
This year alone, the country's national healthcare expenditure is set to hit $3.5 trillion meaning every citizen will be having a budget of $10,345.


Health care costs statistics

The above budget for every American is an average value. In other words, they will not spend that amount, and as a matter of fact, the expenditure in the healthcare of the US is irregular.
A separate government study reports that nearly 5% of the citizens (either frail or ill) are responsible for approximately half the expenditure in that particular year. Unfortunately, the other 50% of the population's healthcare cost is either little or none and accounts for 3% of the healthcare spending.
The hospital care gets the largest share of this years' $3.5 trillion projected spending translating to approximately 32%, while nurses and doctors are accounting for about 20%. Prescription medication accounts for about 10%.
Furthermore, the report projects that costs incurred by consumers will continue to rise as the number of citizens subscribed to high-deductible plans continue to increase.

Health care costs

In 2017, forces that produce an increase in healthcare costs are now being tamed by the need for quality health care in the New Health Economy.
According to PwC's Health Research Institute, the trend in the medical costs in 2017 are projected to be in the balance with that of the current year, meaning a 6.5% rate in growth.
Various signals present indicate that the medical cost growth rate over the decade, which has been relatively slow, will experience a faster growth as the utilization of the new health care access points increase.
Furthermore, increase to services which are consumer oriented must be implemented by healthcare institutions while at the same time reducing the cost per unit.

Healthcare reforms

Reforms are governed by the Affordable Healthcare Act(ACA) whose main aim is to protect patients.
How does the health care law benefit citizens?

  • Children

Children with existing medical conditions can now get health insurance cover. Furthermore, new health plans are in place to cater for all immunization costs for children. In other words, no parent will have to pay a deductible for the child to receive vaccination treatments.

  • Adults

The new Health plans cover preventive services costs for both men and women, implying that the person will not have to pay deductible or co-payments for preventive services. Such services include vaccines, diabetes, and prostate cancer screening, etc. Furthermore, the parents' private health insurance cover can be used by their children anywhere as long as they are 26 years and below.

  • Sick people

The medical insurance companies are not allowed by the law to drop the insurance cover of a person if he or she gets sick. Furthermore, the setting of financial limits on benefits is prohibited, implying that health is always covered.

  • Seniors

Medicare patients that are under the prescription medication benefit and have hit the coverage gap benefit from the reform law. Therefore, the person does not have to incur costs relating to preventive services. Old people with insurance plan will not pay more than three times the rate incurred by younger individuals with similar health insurance plan.
A 50% discount is available for enrollees on prescription medication covered by Medicare Part D.
Enrollees are entitled to a discount on Medicare-covered generic drugs. This discount that started in 2011 (7%) grows by the same value each year until it they pay only 25% cost of generic medication.
Individuals that do not qualify for Medicare and further cannot meet the costs of healthcare insurance can receive financial support from the government. Such assistance can assist the person in buying private health insurance via a state-operated health insurance exchange.Furthermore, A minimum benefit is available for all insurance in the exchange.

The various Healthcare trends

1.   MACRA
Federal legislation in the health care sector that is beneficial to payers and physicians that govern how payment is made in the US.Most doctors and employers believe that MACRA can bring about change, improving how most providers in the United States get their pay.
2.   Future of ACA
The US president has retracted his original stand on repealing the ACA and replacing it. However, there are still ongoing debates on whether to do away with it or amend it according to the plans of GOP. The Obamacare status is still pending.
3.   Healthcare costs
Medical cost growth rate projections are at 6.5% and have surpassed the economic inflation. The year 2017 will have to do away with ineffective strategies and concentrate on those strategies inclined to cost saving.
4.   Technological advancements
There has been an increasing trend in clinical data analysis that helps medical practitioners set goals and evaluate performance. In fact, the use of data analytics could assist in saving more than $300 billion in the healthcare sector. Furthermore, the data analytic concept will be very instrumental in the transparent flow of information while creating a value chain in the health sector.
The Leading Physician Of the World
Location: New York, NY, USA

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