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NHE Fact Sheet

Historical NHE, 2012:

  • NHE grew 3.7% to $2.8 trillion in 2012, or $8,915 per person, and accounted for 17.2% of Gross Domestic Product (GDP).
  • Medicare spending grew 4.8% to $572.5 billion in 2012, or 21 percent of total NHE.
  • Medicaid spending grew 3.3% to $421.2 billion in 2012, or 15 percent of total NHE.
  • Private health insurance spending grew 3.2% to $917.0 billion in 2012 or 33 percent of total NHE.
  • Out of pocket spending grew 3.8% to $328.2 billion in 2011, or 12 percent of total NHE.
  • Hospital expenditures grew 4.9% to $882.3 billion in 2012, faster than the 3.5% growth in 2011.
  • Physician and clinical services expenditures grew 4.6% to $565.0 billion in 2012, a faster growth than the 4.1% in 2011.
  • Prescription drug spending increased 0.4% to $263.3 billion in 2012, slower than the 2.5% growth in 2011.
  • Household spending accounted for the largest share of total health spending in 2012 at 28 percent followed by the federal government (26 percent), private businesses (21 percent), and state and local governments (18 percent).

For further detail see NHE Tables in downloads below.

Projected NHE, 2012-2022:

  • NHE is projected to grow an average of 5.8 percent per year over the projection period (2012-2022).
  • The health share of GDP is projected to grow to 19.9 percent by 2022.
  • Medicare spending is projected to grow an average of 6.6% per year with the highest growth projected in 2022 as provisions from the 2011 Budget Control Act expire and the oldest Baby-Boomers are expected to use relatively more expensive long-term care services
  • Medicaid spending is projected to grow an average of 6.8% per year, including a projected increase of 12.2% in 2014 as millions enroll in the program as a result of the Affordable Care Act.
  • Private spending is projected to grow an average of 5.3% per year for 2012-2022 reflecting slower expected growth in 2013 (3.5 percent) related to the modest economic recovery followed by faster growth in 2014 (5.2 percent) due in part to the implementation of the major coverage provisions of the Affordable Care Act.
  • Spending on hospital services is projected to grow an average of 5.8% per year over the projection period and reach $1.6 trillion by 2022.
  • Spending on physician and clinical services is projected to grow slightly faster than hospital spending at an average of 5.9% per year over the projection period and reach $1.0 trillion by 2022.
  • Spending on prescription drugs is projected to grow an average of 5.1% per year over the projection period with expected average growth of less than 1% through 2013 reflecting several drugs’ patent expirations, followed by growth of between six and seven percent for the last half of the period.  Spending is projected to reach $0.5 trillion by 2022.
  • By 2022, federal, state, and local government health care spending is projected to be nearly 50 percent of national health expenditures, up from 45 percent in 2012, with federal spending accounting for about three-fifths of the total government share.

For further detail see NHE projections 2012-2022 in downloads below.

NHE by Age Group and Gender, Selected Years 2002, 2004, 2006, 2008, and 2010:

  • Per person personal health care spending for the 65 and older population was $18,424in 2010, 5 times higher than spending per child ($3,628) and 3 times spending per working-age person ($6,125).
  • In 2010, children accounted for 25 percent of the population and 13 percent of PHC spending.
  • The working-age group comprised the majority of spending and population in 2010, at 53 percent and 62 percent respectively.
  • The elderly were the smallest population group at 13 percent of the population and accounted for the remaining 34 percent of spending in 2010.
  • Per person spending for females ($7,860) was 25 percent more than males ($6,313) in 2010.
  • In 2010, per person spending for male children (0-18) was 3 percent more than females.  However, for the working age and elderly groups, per person spending for females was 29 and 9 percent more than for males.

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.