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According to the Centers for Medicare and Medicaid Services (CMS) health care spending in the United States is projected to increase by 5.8% this year to $1.3 trillion. The spending per participant cost will increase by 6% $7,459. Despite this, enrollment is expected to decrease by 0.2% to 178 million.
Overall health care spending is set to reach $5 trillion this year, with an average 2024 spending per person of $15,074. According to CMS projection tables, 2032 total health care spending could hit $7.7 trillion, making up 19.7% of the gross domestic product.
Employer Takeaway
Health care spending is projected to increase in 2024, impacting individuals, employers, and carriers. This may lead to employers facing higher costs and enrollment challenges. As health care becomes less affordable, employee enrollment rates are expected to decline. Employers can manage rising costs by exploring customizable benefits, alternative funding, and wellness programs. They should also continue to monitor benefits trends, employee utilization, and spending. Download the bulletin for more details.
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