Health spending outlay tops $2 trillion, but spending growth on doctors declines
Washington — While the national health spending growth rate increased slightly in 2006, the percentage rise in expenditures on physician services slowed markedly, due largely to a small Medicare pay increase and its private-sector fallout, according to a new report by the Centers for Medicare & Medicaid Services.
At the same time, the start of Medicare Part D had a major impact in the prescription drug sector.
Overall national health spending reached $2.1 trillion, up 6.7% from $1.97 trillion in 2005, states the CMS report, published in the January/February Health Affairs. The 2005 growth rate was 6.5%.
This moderate increase was possible because of a broad-based slowdown in spending growth in many categories, including physicians and clinical services. These expenditures increased by 5.9% in 2006, down from 7.4% in 2005, found the report, “National Health Spending in 2006: A Year of Change for Prescription Drugs.” For the first time since 1999, physician spending increased more slowly than the gross domestic product.
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