Medicare’s Spending per Beneficiary Increased Twice as Fast as Employer-Based Plans’ in Ten Years

By John R. Graham
July 9, 2014 - NCPA

A new study from the American Health Policy Institute analyzes the growth in health spending by different payers over the last decade. In summary, the study found:

• On average, all U.S. employers spent $3,430 per covered life on health care in 2012, up 13.6 percent from 2003 after adjusting for inflation.
• On average, large U.S. employers (1,000 or more employees) spent $4,990 per covered life on health care in 2012.
• In 2012, government (federal and state) spent $1.1 trillion on health care, or an average $9,130 per covered life, up from $8,010 in 2003, or 14.0 percent, after adjusting for inflation;

• Government spent over $6,900 per covered life on health care for military and veterans health programs in 2012, up 10.6 percent from 2003 after adjusting for inflation;
• Medicaid spent almost $7,540 per covered life in 2012, down 2.8 percent from 2003 after adjusting for inflation;
• Medicare spent $10,830 per covered life in 2012, up 28.2 percent from 2003 after adjusting for inflation;
• The average cost of government health care spending per covered life has risen almost 30 percent since 1995 after adjusting for inflation, from $7,040 to $9,130; and
• Households spent an additional $2,570 per person on health care, up 11.6 percent from 2003 after adjusting for inflation.