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Growth in Health Spending Remained Relatively Low in 2013

Health spending in the United States increased by 3.6% between the fourth quarter of 2012 and the fourth quarter of 2013, the latest periods for which data are available. (Total health spending in 2013 was about $2.9 trillion, up from $2.8 trillion in 2012 and is equivalent to $9,255 per person.) During this period, spending grew at its slowest annual growth rate since 1960, the first year for which data are publicly available. Looking at the recent past, annual spending growth was 6.3% between the fourth quarter of 2006 and the fourth quarter of 2007 (hereinafter written as 2007), 4.8% in 2008, 3.8% in 2009, 3.9% in both 2010 and 2011, and 4.1% in 2012. The three largest sources of funding for health spending are private health insurance ($962 billion), Medicare ($586 billion), and Medicaid ($449 billion, excluding the State Children's Health Insurance Program, or CHIP). Spending growth slowdowns in 2013 were especially notable for Medicare and private health insurance. These data are from the National Health Expenditure Accounts. (Unless otherwise noted, the information in this Insight is from this January 2015 Health Affairs article [link requires paid subscription].)