U.S. Healthcare Spending Reaches $2.1 Trillion in 2006, Increasing 6.7 Percent

Tuesday, January 8th, 2008
This post was written by Melanie Matthews

U.S. healthcare spending in 2006 increased by 6.7 percent to $2.1 trillion, or $7,026 per capita, according to a Centers for Medicare and Medicaid (CMS) report published in the journal Health Affairs. According to the report, healthcare spending in 2006 accounted for 16 percent of gross domestic product, an increase of 0.1 percent from 2005.

  • Prescription drug spending in 2006 increased to $216.7 billion, an 8.5 percent increase from 2005. Public programs — such as Medicare, Medicaid, those operated by the Department of Defense and the Department of Veterans Affairs, and state and local hospital subsidies — accounted for 34 percent of prescription drug spending, compared with 28 percent in 2005, before the Medicare prescription drug benefit took effect.
  • Medicare spending in 2006 increased to $401.3 billion from $338 billion in 2005, and the prescription drug benefit accounted for $41 billion in Medicare spending in 2006. In 2006, Medicare accounted for 18 percent of retail prescription drug spending, compared with 2 percent in 2005.

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