Biggest Jump in Health Care Spending in over 30 Years

May 2, 2014

According to advance estimates from the Bureau of Economic Analysis, health care spending grew a whopping 9.9 percent in the first quarter of 2014, reports Business Insider.

The jump is the biggest percent change in health care spending in more than 30 years -- in 1980, health care spending rose 10 percent in the third quarter of the year. After adjusting for inflation, the United States is spending more on health care than ever before in history.

  • Personal consumption grew 3 percent from the fourth quarter of 2013 to the first quarter of 2014.
  • Half of that consumption was due to health care spending growth, as Americans signed up for health insurance on the exchanges and qualified for Medicaid coverage.

Of the 8 million who enrolled in insurance plans during open enrollment, half signed up in March or during the first two weeks of April, so the United States could continue to see even higher spending increases next quarter.

Source: Brett LoGiurato, "We Just Saw The Biggest Explosion In Health-Care Spending In Over 30 Years, And It Had A Big Impact On GDP," Business Insider, April 30, 3014.

 

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