U.S. Health Spending Soars 7.5% to $4.9 Trillion in 2023

Health spending in the U.S. increased by 7.5% in 2023, totaling $4.9 trillion, as reported by the Centers for Medicare & Medicaid Services (CMS). This growth is notable compared to the 4.6% rise in 2022, primarily fueled by an 11.5% increase in private health insurance and an 8.1% rise in Medicare spending, while Medicaid growth slowed to 7.9%. A key driver was the rebound in traditional fee-for-service Medicare, which grew by 1.7%, alongside significant growth in Medicare Advantage plans, now comprising 52% of Medicare expenditures. This increase in spending contributed to a record high of 92.5% of insured individuals in the U.S. in 2023.

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