News: CMS projects national health spending grew to $5.7 trillion in 2025
National health spending is estimated to have reached $5.7 trillion in 2025, a 7.3% increase from 2024, according to an analysis by the CMS published by Health Affairs.
CMS projects growth to continue in 2026, due to continued demand for high-cost retail prescription drugs, mostly from individuals with Medicare and private insurance. However, the growth rate is projected to slow “as a result of Marketplace enrollment declines and legislation affecting Medicaid payments and enrollment,” the authors noted.
They also stated that “compared with the faster growth in utilization, health price growth […] has been fairly moderate and is expected to average roughly 2.5 percent through 2026.”
According to the report, health spending is expected to grow to nearly $9 trillion by 2034. The insured share of the population is expected to decline to 90.5%, down from 91.7% in 2025.
Editor’s note: To read the full report, click here. To read additional coverage from the American Hospital Association, click here.