--- title: "New CMS Report: Healthcare Spending Trends Through 2034" description: CMS projects healthcare spending will reach nearly $9 trillion by 2034, increasing the need for employers to monitor trends and help employees make informed healthcare decisions. image: https://blog.nisbenefits.com/hubfs/blog-headers/healthcare-spending-b.jpg --- ![stethoscope wrapped around blue arrow moving up](https://blog.nisbenefits.com/hubfs/blog-headers/healthcare-spending-b.jpg) # New CMS Report: Healthcare Spending Trends Through 2034 - Home - [Employee Benefit News for School, City and County Employers](https://blog.nisbenefits.com) - New CMS Report: Healthcare Spending Trends Through 2034 [ Valerie Ortiz ](https://blog.nisbenefits.com/author/valerie-ortiz) 07/07/2026 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner) [0 Comments ](https://blog.nisbenefits.com/healthcare-spending-trends-through-2034#postComment) 1 Minutes New projections from the U.S. Centers for Medicare and Medicaid Services (CMS) Office of the Actuary show healthcare spending reaching nearly $9 trillion by 2034 which is about 20.6% of the economy, up from $5.3 trillion, or 18% of the economy, in 2024.   CMS notes that spending is rising not only from higher costs and inflation, but also from Americans using more care after delaying services during COVID-19, a utilization surge expected to continue through 2026 before easing. Retail prescription drug costs are projected to grow the fastest over the next decade, especially in 2025–2026, driven by increased use of high-cost cancer therapies and GLP‑1 drugs. Actuaries also project a continued shift into public programs, especially Medicare, which is expected to see the fastest spending growth, averaging 7.7% per year from 2025 to 2034, as enrollment and per‑person costs rise with aging baby boomers. Legislative changes will also shape costs through 2028. The One Big Beautiful Bill Act caps certain Medicaid payment rates, putting downward pressure on Medicaid spending growth and reshaping how dollars flow to hospitals and other providers. You can read the CMS’ full National Health Expenditure Projections, 2025-34 [here](https://www.healthaffairs.org/doi/10.1377/hlthaff.2026.00642).   ## **Employer Takeaways** As healthcare costs climb, employers play a critical role in helping employees understand and use their health plans effectively by building [healthcare literacy](https://blog.nisbenefits.com/health-care-literacy-for-employees) while closely tracking trends, utilization, and spending. Download the [bulletin](https://blog.nisbenefits.com/hubfs/blog-supporting-docs/bulletin-2025-34-healthcare-spending-projection.pdf) for more details. 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