Health Affairs

Posting date: January 11, 2005

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Health Affairs, 10.1377/hlthaff.24.1.185
Copyright © 2005 by Project HOPE

Web Exclusives

Trends: Health Spending Growth Slows In 2003

Cynthia Smith ^1*, Cathy Cowan ², Art Sensenig ³, Aaron Catlin ⁴, Health Accounts Team ⁵

¹ Cynthia Smith is an economist in the the National Health Statistics Group, Office of the Actuary, Centers for Medicare and Medicaid Services, in Baltimore, Maryland.
² Cathy Cowan is an economist in the the National Health Statistics Group, Office of the Actuary, Centers for Medicare and Medicaid Services, in Baltimore, Maryland.
³ Art Sensenig is an economist in the the National Health Statistics Group, Office of the Actuary, Centers for Medicare and Medicaid Services, in Baltimore, Maryland.
⁴ Aaron Catlin is an economist in the the National Health Statistics Group, Office of the Actuary, Centers for Medicare and Medicaid Services, in Baltimore, Maryland.
⁵ The National Health Accounts team includes Mary Carol Barron, Micah Hartman, Anna Long, Anne Martin, Mary Lee Seifert, Nate Singer, Andrea Sisko, Ben Washington, and Lekha Whittle.

^*Corresponding author.

Abstract

The pace of health spending growth slowed in 2003 for the first time in seven years, driven in part by a slowdown in public spending growth. U.S. health care spending rose 7.7 percent in 2003, much slower than the 9.3 percent growth in 2002. Financial constraints on the Medicaid program and the expiration of supplemental funding provisions for Medicare services drove the deceleration. U.S. health spending accounted for 15.3 percent of U.S. gross domestic product in 2003, an increase of 0.4 percentage points from 2002.

Key Words: Business Of Health, Consumer Issues, Health Reform, Health Spending, Hospitals, Pharmaceuticals, Physicians, Research And Technology

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