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NHE Fact Sheet

Historical NHE, including Sponsor Analysis, 2011:

  • NHE grew 3.9% to $2.7 trillion in 2011, or $8,680 per person, and accounted for 17.9% of Gross Domestic Product (GDP).
  • Medicare spending grew 6.2% to $554.3 billion in 2011, or 21 percent of total NHE.
  • Medicaid spending grew 2.5% to $407.7 billion in 2011, or 15 percent of total NHE.
  • Private health insurance spending grew 3.8% to $896.3 billion in 2011, or 33 percent of total NHE.
  • Out of pocket spending grew 2.8% to $307.7 billion in 2011, or 11 percent of total NHE.
  • Hospital expenditures grew 4.3% to $850.6 billion in 2011, slower than the 4.9% growth in 2010.
  • Physician and clinical services expenditures grew 4.3% to $541.4 billion in 2011, a faster growth than the 3.1% in 2010.
  • Prescription drug spending increased 2.9% to $263.0 billion in 2011, faster than the 0.4% growth in 2010.
  • As a share of total health spending, households (28 percent) and the federal government (28 percent) accounted for the largest sponsor shares.  From 2010 to 2011, state and local government (17 percent) shares increased by about 1 percentage point while households and the federal government shares dropped by a percentage point.  Shares of private businesses (21 percent) remained constant from 2009 to 2011.

For further detail see NHE Tables in downloads below.

Projected NHE, 2011-2021:

  • NHE is estimated to have grown 3.9 percent in 2011 and projected to grow an average of 5.7 percent per year over the projection period (2011-2021).
  • The health share of GDP is estimated to have reached 17.9 percent in 2011 and projected to grow to 19.6 percent by 2021.
  • Medicare spending is estimated to have grown 6.3% in 2011 and projected to grow an average of 6.1% per year over the projection period.
  • Medicaid spending is estimated to have grown 6.8% in 2011 and projected to grow an average of 8.2% per year over the projection period.
  • Private spending is estimated to have grown 1.8% in 2011 and projected to grow an average of 5.3% per year over the projection period.  
  • Spending on hospital services is estimated to have grown 4.3% in 2011, reaching $849 billion.  Spending is projected to grow an average of 5.7% per year over the projection period.
  • Spending on physician and clinical services is estimated to have grown 2.7% in 2011, reaching $529 billion.  Spending is projected to grow an average of 5.4% per year over the projection period.
  • Spending on prescription drugs is estimated to have grown 3.9% in 2009 to $269 billion.  Spending is projected to grow an average of 5.8% per year over the projection period.
  • By 2021, federal, state, and local government health care spending is projected to be nearly 50 percent of national health expenditures, up from 46 percent in 2011, with federal spending accounting for about two-thirds of the total government share.

For further detail see NHE projections 2011-2021 in downloads below.

NHE by Age Group, Selected Years 1987, 1996, 1999, 2002, and 2004:

  • Per person personal health care spending for the 65 and older population was $14,797 in 2004, 5.6 times higher than spending per child ($2,650) and 3.3 times spending per working-age person ($4,511).
  • In 2004, children accounted for 26 percent of the population and 13 percent of PHC spending. 
  • The working-age group comprised the majority of spending and population in 2004, at 52 percent and 62 percent respectively.
  • The elderly were the smallest population group at 12 percent of the population, and accounted for the remaining 34 percent of spending in 2004.
  • Spending for those 85 years and older relative to spending for all other age groups, decreased from 1987 to 2004, mainly due to a slowdown in nursing home spending.
  • Medicare enrollment growth is anticipated to be a stronger influence on future spending growth than the changing age-mix of the Medicare population.

For further detail see health expenditures by age in downloads below.

NHE by State of Residence, 1991-2009:

  • In 2009, per capita personal health care spending ranged from a high of $9,278 in Massachusetts to $5,031 in Utah, where spending was the lowest.
  • In 2009, the highest per capita spending occurred in Massachusetts, Alaska, Connecticut, Maine, and Delaware, with spending 24 percent or more above the U.S. average.
  • In 2009, the states with the lowest spending per capita were Utah, Arizona, Georgia, Idaho, and Nevada, with spending 16 percent or more below the U.S. average.
  • Medicare expenditures per beneficiary were highest in New Jersey ($11,903) and lowest in Montana ($7,576) in 2009.
  • Medicaid expenditures per enrollee were highest in Alaska ($11,569) and lowest in California ($4,569) in 2009.

For further detail see health expenditures by state of residence in downloads below.

NHE by State of Provider, 1980-2009:

  • California's aggregate personal health care spending was the highest in the nation, representing 11.1 percent of total U.S. personal health care spending in 2009.
  • Wyoming's aggregate personal health care spending was the lowest in the nation, representing just 0.2 percent of total U.S. personal health care spending in 2009.
  • All states except Delaware, Virginia, and Wyoming spent 12 percent or more of their state GDP on health care in 2009.
  • On average, between 2004 and 2009, aggregate personal health care spending grew the fastest in Alaska (8.0 percent) and the slowest in Vermont (3.3 percent).

For further detail see health expenditures by state of provider in downloads below.