Health Care Spending 2004
Growth in U.S. health care spending slowed for the second straight year in 2004, increasing by only 7.9%, according to the Centers for Medicare and Medicaid Services' annual report on health care spending. This compares with the 8.2% growth rate in 2003 and 9.1% growth rate in 2002. Slower growth in prescription drug spending has contributed to this overall slowdown. In 2004, prescription drugs accounted for only 11% of the growth in national healthcare expenditures, smaller than its share of the increase in recent years. Spending for physician services grew 9% in 2004, nearly the same as the 8.6% increase experienced in 2003.