U.S. Health Care Spending Decreases in 2016


On Wednesday, a federal study conducted by the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS) showed that while the overall spending for health services increased in 2016 ($3.3 trillion), the pace at which spending for healthcare slowed down drastically compared to the previous two years.

Less Demand

According to the CMS, the main reason for the slow down was the decreasing demand for physician services, prescription drugs, and hospital care by the American public.

During the previous two years, health care spending in the U.S. rose by 4.3% as a result of prescription drug purchases induced by Obamacare. As more and more Americans have looked to offset the high prices brought on by the national health policy the traditional forms of health treatments have begun to lessen and with them the overall cost for health care in the U.S.

Across the Board

Both private and public forms of medical insurance, prescription drugs, medical goods, Medicare, Medicaid and health services were affected by the weakening demand for these forms of treatment in 2016, making it clear that most Americans found the Affordable Healthcare Act not so affordable.

Rate of Spending Down, Overall Spending Up

While the rate of healthcare spending decrease last year, the overall sending for health services continued to increase.

During 2015, U.S. health care spending was 17.7% of gross domestic product. In 2016, however, this number increased to 17.9%.
As the spending rate for U.S. health services slowed down across most forms of healthcare industries, there was one section that increased: out-of-pocket health charges.

These charges included deductibles, copayments, and expenses not covered by insurance under Obamacare. Yet another telling statistic that showed the overall view of Americans toward the national health care act.

Medicare and Medicaid

Medicaid, a partially-run federal health insurance program for the poor, grew by 3.9% last year which was a drastic decrease from the previous two years (11.5% in 2014 and 9.5% in 2015).

Medicare, a federal program providing insurance coverage for senior citizens, grew by 3.6% in 2016, roughly a one percent decrease compared to the previous two years (4.9% in 2014 and 4.8% in 2015).

Non-Coverage Charges

The total out-of-pocket health care spending in 2016 increased by 3.9%, a one percent increase from 2015’s out-of-pocket rate of 2.8%.

The increase in out-of-pocket health spending was mostly due to Americans refusing to accept and partake in Obamacare and opting to have no insurance coverage at all or go with higher deductible plans.


Please enter your comment!
Please enter your name here