Total U.S. healthcare spending increased an estimated 7.2% to $5.3 trillion in 2024, largely driven by utilization and more complex services as opposed to pricing increases, according to the Centers for Medicare and Medicaid Services actuaries’ annual estimate. The analysis, published Wednesday afternoon in Health Affairs and on CMS’ website, pegs healthcare spending at 18% of the broader economy in 2024, up from 17.7% the year prior. The total also translates to an average of $15,474 spent on healthcare per person in 2024, up from $14,580.

UnitedHealthcare to pilot accelerated MA payments to rural hospitals

Providers have long complained that insurers in MA reimburse below cost and delay medically necessary care, negatively impacting patients and adding to already heavy administrative red tape. Meanwhile, insurers contend they need to keep a handle on rising medical costs. Rural providers in particular say they experience disproportionate financial losses in MA. MA plans typically pay rural providers 90% of what traditional Medicare pays for the same services, and more than 80% of physicians say insurer requirements like prior authorizations negatively impact care, according to a report from the American Hospital Association published early 2025.