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Health care spending rate slows in 2004
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WASHINGTON — Health care spending has slowed for the second straight year, according to the Centers for Medicare and Medicaid Services.
Spending in 2004 increased 7.9% over 2003 levels, but overall spending growth slowed, the agency said. In 2003, health care spending grew 8.2%, and in 2002, it grew 9.1%. Health care spending totaled $1.9 trillion in 2004, or about $6,280 per person, the agency said.
“While the growth rate is declining, the cost of health care continues to be a concern for government, business, individuals and families,” said Mike Leavitt, Health and Human Services Secretary.
In 2004, prescription drugs accounted for 11% of the overall growth in expenditures. Spending on prescription drugs increased 8.2% in 2004, which decreased from the 10.2% spent on drugs in 2003. Spending for physician services accounted for 29% of the total growth in personal health spending, an increase from the average 25% share in the 2000 to 2002 period.