U.S. health spending hits $3 trillion as Obamacare and rising drug costs kick in
- 8 years ago
U.S. healthcare spending grew 5.3% last year to $3 trillion, another sign that a historic slowdown in medical inflation may be ending, a new federal report shows.
The massive expansion of insurance coverage under the health law and rapid growth in specialty drug spending fueled the uptick in medical costs, officials said.
"Two main factors were responsible for health spending growth in 2014 - coverage expansion associated with the Affordable Care Act and faster growth in prescription drug spending," said Anne B. Martin, an economist at the Centers for Medicare and Medicaid Services.
That came from more people buying private health insurance with the help of federal premium subsidies, and more individuals enrolling in Medicaid programs that were expanded in more than 25 states.
This week, a U.S. Senate report criticized Gilead Sciences Inc. for pricing its hepatitis C drug Sovaldi at $84,000 per patient for a standard 12-week treatment.
The massive expansion of insurance coverage under the health law and rapid growth in specialty drug spending fueled the uptick in medical costs, officials said.
"Two main factors were responsible for health spending growth in 2014 - coverage expansion associated with the Affordable Care Act and faster growth in prescription drug spending," said Anne B. Martin, an economist at the Centers for Medicare and Medicaid Services.
That came from more people buying private health insurance with the help of federal premium subsidies, and more individuals enrolling in Medicaid programs that were expanded in more than 25 states.
This week, a U.S. Senate report criticized Gilead Sciences Inc. for pricing its hepatitis C drug Sovaldi at $84,000 per patient for a standard 12-week treatment.