U.S. Healthcare Spending Rises to $4.9 Trillion

U.S. healthcare spending surged by 7.5% in 2023, reaching a record $4.9 trillion, according to the Centers for Medicare and Medicaid Services. This growth was fueled by increased use of medical services and higher enrollment in private health plans, particularly under the Affordable Care Act. Inflation-adjusted healthcare costs rose by 4.4%, outpacing the U.S. GDP growth of 2.9%. Spending on retail prescription drugs saw the largest increase, climbing 11.4% to $449.7 billion, largely due to the rising use of diabetes and weight-loss medications. Additionally, hospital care spending reached $1.5 trillion, marking a 10.4% increase, the highest in nearly three decades. Overall, healthcare accounted for 17.6% of the U.S. economy in 2023, slightly up from the previous year.