US national health care spending slows, but still outpaces economic downturn

Spending on health care in the USA grew 6.1% in 2007, to total $2,200.0 billion, or $7,421 per person. This was the slowest rate of growth since  1998 and 0.6 of a percentage point lower than the increase of 6.7% in  2006, according to a report by the Centers for Medicare & Medical  Services (CMS). However, such expenditure continues to outpace overall  US economic growth, which advanced 4.8% in 2007.

"This is another reminder that the cost of health care continues to be  a real and pressing concern facing the American public and the federal  government," said CMS Acting Administrator Kerry Weems, adding: "this  report - like the reports issued last year on the financial status of  Medicare and Medicaid - is a stark reminder that we must redouble our  ongoing efforts to reform the delivery of health care services in this  country to bring about the goal of affordable, high quality health for  all Americans."

The slower growth in 2007 was attributed mostly to a downturn in both  retail prescription drug spending and Medicare expenditures associated  with administering the scheme's benefits. Even as health care spending  growth slowed, the health spending share of the nation's Gross Domestic  Product continued to climb, reaching 16.2% in 2007, up by 0.2 percentage  point from 2006.