US healthcare spending rose 7.5% in 2023, government report says

By Amina Niasse

NEW YORK (Reuters) – U.S. healthcare spending rose by 7.5% in 2023 from 4.6% the year prior to reach $4.9 trillion, driven by increased use of medical services and as enrollment climbed for private health plans, particularly in plans under the Affordable Care Act, the federal government’s Centers for Medicare and Medicaid Services said in a report on Wednesday.

The agency, which oversees Medicare plans for people aged 65 and older or with disabilities, said that healthcare spending outpaced U.S. economic growth. It rose by an inflation-adjusted 4.4% compared witth gross domestic product growth of 2.9% in 2023, the report said.