Healthcare spending projected to reach $7.7 trillion by 2032, surpassing inflation rate and making up nearly 20% of GDP

Health care spending in the United States is projected to increase to $7.7 trillion by 2032, a significant rise from the previous year, according to federal actuaries. The spending is estimated to grow by 5.6% annually between 2023-2032, surpassing the expected 4.3% inflation rate. By 2032, healthcare expenses are expected to make up nearly 20% of the GDP, compared to 17.3% in 2022.

In response to the global pandemic, legislative provisions enacted in 2023 resulted in a higher use of healthcare services and increased health insurance enrollment trends. However, these provisions are expected to have an impact on Medicaid enrollment and Medicare spending from 2023 to 2032.

According to the actuaries, Medicare is projected to have the highest ten-year average spending growth rate due to increased enrollment into the program. On the other hand, Medicaid enrollment is expected to decrease from 91.