National Healthcare Trends

Health expenditures in the United States continue to grow and the U.S. spends more on healthcare than any other nation.

Healthcare also continues to be a major part of the economy. Health spending is expected to grow over the next several years, with National Health Expenditure rapidly approaching $2.3 trillion. The federal government contributed 46 percent of healthcare payments in 2006. Although the government’s overall contribution to healthcare spending has been rising, the percentage the government contributes is expected to be about the same in 2007 as it was in 2006.

Hospitals, physicians and prescription drugs continued to be the top three healthcare spending areas for both public and private funders. Three-quarters of the private health insurance dollar goes toward hospitals, physician and clinical services, and prescription drugs. While still increasing, out-of-pocket healthcare spending by Americans continues to be lower than most other developed countries. In addition, out-of-pocket payments are being distributed across more areas today, including prescription drugs and dental services.

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