Payer spending reflects the amounts that insurers paid to providers for health care services excluding the portion paid out of pocket by the insured. In 2014, payer expenditures accounted for the bulk of total health care spending per capita (83.7%) for the Employer Sponsored Health Insurance (ESI) population, increasing by 3.6%, from $4,011 to $4,157, according to the Health Care Cost Institution. Payer spending grew at a rate faster than that of out of-pocket spending: 3.6% as compared to 2.2%.
The following data has been provided by the Health Care Cost Institute (HCCI). To access this full article go to
2014 Healthcare Cost and Utilization Report. HCCI reports on health expenditures by five age cohorts (ages 0-18, 19-25, 26-44, 45-54, and 55-64). In the data for 2010 and 2011, HCCI found that health care expenditures for children (ages 0-18) and young adults (ages 19-25) grew faster than for all other age groups. In 2012, young adults had the highest expenditures growth rate, while the growth rate for children fell to below the growth rate for adults ages 26-44. However, compared with 2011, growth for children slowed in 2012, falling by 3.6 percentage points to 4.2 percent growth for children, and declining 2.9 percentage points to 5.4 percent growth for young adults. Expenditures on children rose by nearly $100 between 2011 and 2012 to $2,437, while expenditures on young adults rose by $130 to $2,548.
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A New Way of Measuring Health Costs Sheds Light on Recent Health Spending Trends
Using recently-released disease-based health spending data compiled by the federal government, the analysis finds that the drivers of health spending growth shifted in the years following the Great Recession. The number of people treated for various diseases picked up, but that was offset early in the economic recovery by slower growth in the cost of treating those diseases (including prices).
CMS National Health Expenditure Projections 2012-2022
By 2022, the ACA is projected to reduce the number of uninsured people by 30 million, add approximately 0.1 percentage-point to average annual health spending growth over the full projection period, and increase cumulative health spending by roughly $621 billion.
Spending Growth Trends: Keeping An Eye On Spending Per Person
In brief, the Office of the Actuary estimates that national health spending growth in 2014 returned to a rate of over 5 percent, a growth rate not seen since 2007. However, their longer-term health care spending growth projections continue to be pegged at 1.1 percentage points faster than economic growth, a rate well below the historical average.