(Reuters)—U.S. health spending is expected to grow at an average rate of 5.5% every year from 2018 over the next decade and will reach nearly $6 trillion by 2027 as more people become eligible for Medicare, a government health agency said on Wednesday.
Rising income levels, better employment rate and more people enrolling for Medicare, the federal health insurance program for people aged 65 and above and the disabled, will cause healthcare spending to rise to 19.4% of the U.S. economy by 2027, the Centers for Medicare & Medicaid Services (CMS) said.
In 2017, healthcare spending accounted for 17.9% of the country’s gross domestic product.
Annual spending growth for Medicare is expected to average 7.4% over the 10-year period, CMS said.