US health spending growth for 2009 at 4% is lowest in five decades

In 2009, US health care spending grew just 4.0% - a historically low rate of annual increase - to $2,500 billion, or $8,086per person. Despite the slower growth, the share of the gross domestic product devoted to health spending increased to 17.6% in 2009 from 16.6% in 2008, according to a report prepared annually by the Centers for Medicare and Medicaid Services (CMS) Office of the Actuary.

The growth rate of health spending continued to outpace that of the overall economy, which experienced its largest drop since 1938. The recession contributed to slower growth in private health insurance spending and out-of-pocket spending by consumers, as well as a reduction in capital investments by health care providers. The recession also placed increased burdens on households, businesses, and governments, which meant that fewer financial resources were available to pay for health care. Declining federal revenues and strong growth in federal health spending increased the health spending share of total federal revenue from 37.6% in 2008 to 54.2% in 2009.

However, these figures do not reflect the impact of President Barack Obama's landmark health coverage expansion, which did not pass until 2010. The same Medicare office has previously projected the overhaul will lead to a slight increase in total health care spending, even as it extends coverage to nearly all Americans, noted a review by The Associated Press.