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Health Tracking

TRENDS

Health Spending Growth Up In 1999; Faster Growth Expected In The Future

Spending for health care reached $1.2 trillion in 1999, up 5.6 percent from the prior year (Exhibit 1).¹ This compares with growth of just 4.8 percent in 1998 (Exhibit 2). We expect a more pronounced acceleration in spending growth of 8.3 percent in 2000 and 8.6 percent in 2001 and then moderation to growth of 6.5 percent in 2010. The average annual growth rate of 7.2 percent for 1998–2010 would be faster than growth in 1993–1998 (5.2 percent) but slower than growth in 1980–1993 (10.4 percent).

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