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NHE Fact Sheet

Historical NHE, 2012:

  • NHE grew 3.7% to $2.8 trillion in 2012, or $8,915 per person, and accounted for 17.2% of Gross Domestic Product (GDP).
  • Medicare spending grew 4.8% to $572.5 billion in 2012, or 21 percent of total NHE.
  • Medicaid spending grew 3.3% to $421.2 billion in 2012, or 15 percent of total NHE.
  • Private health insurance spending grew 3.2% to $917.0 billion in 2012 or 33 percent of total NHE.
  • Out of pocket spending grew 3.8% to $328.2 billion in 2011, or 12 percent of total NHE.
  • Hospital expenditures grew 4.9% to $882.3 billion in 2012, faster than the 3.5% growth in 2011.
  • Physician and clinical services expenditures grew 4.6% to $565.0 billion in 2012, a faster growth than the 4.1% in 2011.
  • Prescription drug spending increased 0.4% to $263.3 billion in 2012, slower than the 2.5% growth in 2011.
  • Household spending accounted for the largest share of total health spending in 2012 at 28 percent followed by the federal government (26 percent), private businesses (21 percent), and state and local governments (18 percent).

For further detail see NHE Tables in downloads below.

Projected NHE, 2013-2023:

  • National health expenditures (NHE) are projected to grow at an average rate of 5.7 percent from 2013 through 2023, 1.1 percentage points faster than the expected average annual growth rate for the Gross Domestic Product (GDP). As a result, health spending is projected to account for 19.3 percent of GDP by 2023, up from 17.2 percent in 2012.
  • Health spending growth for 2013 is projected to remain slow at 3.6 percent due to the modest economic recovery, the impacts of sequestration and continued slow growth in the utilization of Medicare services, and continued increases in cost-sharing requirements for the privately insured.
  • For 2014, the health spending growth rate is expected to be 5.6 percent, as 9 million Americans are projected to gain health insurance coverage, predominantly through Medicaid or the Health Insurance Marketplaces.  Correspondingly, out-of-pocket spending is projected to decline by 0.2 percent.
  • Average annual projected growth of 6.0 percent per year is projected for 2015 through 2023, largely as a result of the continued implementation of the ACA coverage expansions, faster projected economic growth, and the aging of the population.
  • While projected growth over the projection period is faster compared to recent experience, it is still slower than the growth observed over the longer-term history.
  • The number of uninsured is expected to decline from 45 million in 2012 to 23 million by 2023.
  • By 2023, health expenditures financed by Federal, State, and local governments are projected to account for 48 percent of national health spending and to reach a total of $2.5 trillion; in 2012, such expenditures constituted 44 percent of national health spending and $1.2 trillion.

For further detail see NHE projections 2013-2023 in downloads below.

NHE by Age Group and Gender, Selected Years 2002, 2004, 2006, 2008, and 2010:

  • Per person personal health care spending for the 65 and older population was $18,424in 2010, 5 times higher than spending per child ($3,628) and 3 times spending per working-age person ($6,125).
  • In 2010, children accounted for 25 percent of the population and 13 percent of PHC spending.
  • The working-age group comprised the majority of spending and population in 2010, at 53 percent and 62 percent respectively.
  • The elderly were the smallest population group at 13 percent of the population and accounted for the remaining 34 percent of spending in 2010.
  • Per person spending for females ($7,860) was 25 percent more than males ($6,313) in 2010.
  • In 2010, per person spending for male children (0-18) was 3 percent more than females.  However, for the working age and elderly groups, per person spending for females was 29 and 9 percent more than for males.

For further detail see health expenditures by age in downloads below.

NHE by State of Residence, 1991-2009:

  • In 2009, per capita personal health care spending ranged from a high of $9,278 in Massachusetts to $5,031 in Utah, where spending was the lowest.
  • In 2009, the highest per capita spending occurred in Massachusetts, Alaska, Connecticut, Maine, and Delaware, with spending 24 percent or more above the U.S. average.
  • In 2009, the states with the lowest spending per capita were Utah, Arizona, Georgia, Idaho, and Nevada, with spending 16 percent or more below the U.S. average.
  • Medicare expenditures per beneficiary were highest in New Jersey ($11,903) and lowest in Montana ($7,576) in 2009.
  • Medicaid expenditures per enrollee were highest in Alaska ($11,569) and lowest in California ($4,569) in 2009.

For further detail, see health expenditures by state of residence in downloads below.

NHE by State of Provider, 1980-2009:

  • California's aggregate personal health care spending was the highest in the nation, representing 11.1 percent of total U.S. personal health care spending in 2009.
  • Wyoming's aggregate personal health care spending was the lowest in the nation, representing just 0.2 percent of total U.S. personal health care spending in 2009.
  • All states except Delaware, Virginia, and Wyoming spent 12 percent or more of their state GDP on health care in 2009.
  • On average, between 2004 and 2009, aggregate personal health care spending grew the fastest in Alaska (8.0 percent) and the slowest in Vermont (3.3 percent).

For further detail, see health expenditures by state of provider in downloads below.