Healthcare spending in the United States continues to grow faster than the overall economy. But Medicare and Medicaid are not driving this trend, according to a new study by John Holahan and Stacey McMorrow of the Urban Institute. On a cost-per-enrollee basis, federal and state governments are doing a better job than the private sector in controlling growth since the passage of the Affordable Care Act.
Medicare and Medicaid spending per enrollee grew 2.4 percent per year and 1.6 percent per year, respectively, compared to 4.4 percent per year for private insurance. While overall spending growth for Medicare (5.2% per year) and Medicaid (6.0% per year) exceeded growth in private spending (4.4% per year), the authors attribute this to much faster enrollment growth in public programs compared to private coverage. Average annual enrollment increased 2.8 percent for Medicare and 4.3 percent for Medicaid while private coverage enrollment stayed relatively flat.