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Health spending slowed; will slow more in 2005 budget
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Health care spending grew at 7.8% in 2003, down from a 9.3% growth the year before, according to projections by the Centers of Medicare and Medicaid Services. Spending will continue to slow in the coming decade, the CMS analysis suggests. This slowdown is also reflected in the fiscal year 2005 budget recently proposed by the Bush administration, which trims government health care spending from FY 2004 levels.
In the 2005 budget proposal, mandatory Health and Human Services spending will increase 5.7% to $500 billion, mostly due to the Medicare and Medicaid programs, according to a report in Amednews. Discretionary HHS spending will decrease by $1.1 billion from 2004 levels.
The CMS analysis projects annual growth of 7.3% in health care spending over the coming decade. By 2013, health care spending in the U.S. is projected to reach $3.4 trillion, the CMS release said.
Hospital and prescription drug spending is projected to experience slower growth this coming year than in recent years, the release said.