HEALTH

US household spending on health care tops $1 trillion in 2018 for first time

Dec 5, 2019, 3:11 PM

health care spending...

Photo: Getty Images

(CNN) — American households spent more than $1 trillion on health care in 2018, reaching a pricey milestone, according to federal data released Thursday.

That includes out-of-pocket expenses for medical services and premiums for employer coverage, individual policies and Medicare, as well as Medicare payroll taxes. The figure grew by 4.4% from a year earlier.

The data — part of the National Health Expenditure report — comes as Americans, elected officials and presidential candidates try to tame the rising cost of health care. The issue is a top priority for President Donald Trump and has split the Democrats primary contenders.

Progressive candidates such as Sens. Bernie Sanders of Vermont and Elizabeth Warren of Massachusetts argue that the best way to reduce costs is to have the federal government take over the health insurance industry, while moderates such as former Vice President Joe Biden and South Bend, Indiana, Mayor Pete Buttigieg advocate less radical steps, such as a government-run health insurance option.

Overall, US health care spending rose 4.6% to $3.6 trillion last year, faster than in 2017 but the same as 2016, according to the report, issued by the Centers for Medicare and Medicaid Services. It accounted for 17.7% of the economy, slightly less than a year earlier.

Notably, the prices for prescription drugs at retail pharmacies fell 1% in 2018 — the first time since 1973 — due to a drop in generic drug prices and relatively low growth in brand-name drug prices. The data is based on the consumer price index for prescription drugs, which Trump often cites to show his progress in lowering health care spending. Some experts, however, say this index does not truly reflect the rising cost of drugs, in part because it excludes the pricey medications administered in hospitals and doctors’ offices.

Private businesses, meanwhile, shelled out nearly $727 billion on health care, an increase of 6.2% — the fastest growth rate since 2003. More than three-quarters of that spending is on employer contributions for insurance premiums, which rose at a quicker pace than in 2017.

Spending by Medicare, Medicaid and private health insurance grew faster in 2018 partly because of the reinstatement of the health insurance tax, an Affordable Care Act provision that Congress suspended for 2017. The tax was expected to raise $14.3 billion in 2018, according to the Internal Revenue Service.

While the growth in health care usage slowed last year, larger hikes in prices more than offset it. Hospital prices rose 2.4% last year, somewhat faster than the year before. Hospital spending accounts for one-third of health care expenditures.

The number of uninsured people rose by 1 million for the second year in a row, to 30.7 million in 2018. The uninsured rate remained roughly steady at less than 10%. Democrats have slammed Trump for undermining the Affordable Care act, which helped reduce the uninsured rate after the health insurance exchanges opened and states expanded Medicaid in 2014.

The-CNN-Wire
™ & © 2019 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

Health

A new release from Intermountain Healthcare shows that younger adults are becoming more susceptible...

Waverly Golden

Younger adults are becoming more susceptible to strokes

A new release from Intermountain Healthcare shows that younger adults are becoming more susceptible to stroke.

11 months ago

Melissa Coleman crouches next to her husband, , Brad Coleman, of North Ogden, who sits in a wheelch...

Jenny Carpenter, KSL.com

Young stroke victim survives with quick, lifesaving treatment in northern Utah

After a 36-year-old man had a stroke, he and his wife say to be aware of the signs of stroke and that young people are also at risk.

11 months ago

(Canva)...

Michelle Lee

How, and why, a hobby can bring joy to your life

If it brings you pleasure, is meaningful, and you can do it regularly, you've got yourself a hobby! Here's why they can benefit us so much.

11 months ago

A new release from Intermountain Healthcare shows that younger adults are becoming more susceptible...

Alexandrea Bonilla

Utah clinics winning the fight against overprescribed antibiotics

Intermountain Health and the University of Utah found that urgent-care facilities were more likely to prescribe antibiotics as a quick, easy solution.

11 months ago

Utah Food Bank...

Allessandra Harris

Utah Food Bank aims to ‘Stamp Out Hunger’ this summer

The Utah Food Bank is joining forces with the Letter Carriers Union to collect non-perishable food items for those in need.

11 months ago

...

LEANNE ITALIE AP Entertainment Writer

Mommy blogger Heather Armstrong, known as Dooce to fans, dead at 47

Armstrong had laid bare her struggles as a mother and her battles with depression and alcoholism on her site, Dooce.com, and on social media since 2001.

11 months ago

Sponsored Articles

close up of rose marvel saliva blooms in purple...

Shannon Cavalero

Drought Tolerant Perennials for Utah

The best drought tolerant plants for Utah can handle high elevations, alkaline soils, excessive exposure to wind, and use of secondary water.

Group of cheerful team members high fiving each other...

Visit Bear Lake

How To Plan a Business Retreat in Bear Lake This Spring

Are you wondering how to plan a business retreat this spring? Read our sample itinerary to plan a team getaway to Bear Lake.

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...

BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.

Skier being towed by a rider on a horse. Skijoring....

Bear Lake Convention and Visitors Bureau

Looking for a New Winter Activity? Try Skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.

Banner with Cervical Cancer Awareness Realistic Ribbon...

Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.

Kid holding a cisco fish at winterfest...

Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.

US household spending on health care tops $1 trillion in 2018 for first time