The Centers for Medicare & Medicaid Services (CMS) announced that healthcare spending in the United States grew by 8.2% in 2024. The agency released its estimates in the journal Health Affairs on June 25.
The increase was largely driven by rising Medicare costs. CMS expects this trend to continue, projecting a 7.1% increase in national health spending in 2025.
Looking ahead, CMS forecasts that U.S. health spending will grow by an average of 5.8% each year through 2033. Medicare, which provides health insurance for Americans age 65 and older, is expected to see the fastest growth—averaging a 7.8% increase per year over the next decade.
These rising costs are a major concern for both government officials and families. Healthcare spending affects everything from insurance premiums to the federal budget.
