social security: catlin

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Nation al H eal t h S pe nd ing In 2006: A Year Of Change For Prescription Drugs The rat e of prescripti on dr ug spendi ng incr eased fo r the firs t ti me in se veral years, and Medicare Part D caused some ma jor shiftsin th e payer landscape. by Aaron Catlin, Cathy Cowan, Micah Hartman, Stephen Heffler, and the National Health Expenditure Accounts Team ABSTRACT: In 2006, U.S. health care spendi ng incr eased 6.7 percent to $2.1 tr illion, or $7 ,026 per person. The health care portion of gross domest ic pr oduct (GDP) was 16.0 per - cen t, sl ight ly hi gher than in 2005. Prescri pt ion dr ug spe nding gr owth acc elera te d in 2006 to 8.5 percent, partly as a resu lt of Medicare Part D’s impact. Most of the other major heal th care services and pu blic pa yers ex perienced sl ower gr owth in 2006 th an in pr ior ye ars. The impl ementa ti on of Medi care Part D caused a ma jor shift in the di st ribution of payers for pr esc rip ti ondr ugs,asMedi care pl ay edalargerrolein dr ug purchases than it had before. [Health Affairs 27, no. 1 (2008): xx–yy; 10.1377/hlthaff.27 .1.xx] H ealth care spending i n the united states grew 6.7 percent to $2.1 trillion, or $7,026 per person, in 2006 (Exhibits 1 and 2). This rate of growth was slightly faster than the 6.5 percent rate in 2005, which marked the slowest growth since 1999. Health spending accounted for 16.0 percent of gross domestic product (GDP) in 2006. This share has remained relatively stable since 2003 as a result of slower health spending growth (which peaked in 2002 at 9.1 percent) and relatively strong U.S. economic growth, which has in- creased more than 6 percent each year since 2004. In 2006, health spending growth outpaced nominal GDP growth by 0.6 percentage point. This paper presents a comprehensive view of national health spending through 2006. Spending trends are disaggregate d by type of service, source of funds, and sponsor; the analysis focuses primarily on the most recent years. In 2006, several important findings emerged. First, after six consecutive years of slowing growth, prescription drug spending growth accelerated in 2006. At the same time, imple- S p e n d i n g I n 2 0 0 6 H E A LT H A F F A I R S ~ Vo l u m e 2 7, N u m b e r 1 1 DOI 10.1377 /hlthaff.27.1.1 ©2008 Project HOPE–The People-to-Peop le Health Foundation, Inc. A aro n Cat linand hiscoaut hor s ar e wit h theNati ona l He alt h Statistics Groupin theCMS Offi ce of theActua ry. Cat lin(aar on.catlin@cms .hhs .go v) is an eco nom ist . CathyCowanalsois an eco nom ist ; Mic ah Hartma n is a statistic ian;and St eph en Hef fler is thegroup’s dir ector . Th e oth er membe rs of theNationalHealt h Exp end iture A cco unts T eam ar e ack now led ged at theend of thepaper.

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