Share of Federal Budget Spent on Health Care Jumped in 2009
Written By: Jason Shafrin
In 2008, 38 percent of the federal government’s revenue was spent on health care. In 2009, however, this figure jumped to 54 percent of total revenues. Although federal health spending only increased by 17.9%, a decline in revenues of a similar magnitude caused this large change. Surprisingly, state and local spending on healthcare barely budged. In 2008, state an local spending was 26 percent of total revenues, and this figure only inched up to 27 percent in 2009. In 2009, households still contributed 6% of their income (just like in 2008) and business’s health care expense remained constant at 8 percent of cost in 2009.
Other highlights from the California Health Care Foundation’s 2011 edition of Healthcare 101 include:
Health spending grew 4.0% in 2009, an all-time low, and the smallest annual increase on record.
While health spending by private insurers only grew 1.3% in 2009, Medicare spending grew by 7.9% and Medicaid by 9.0%.
Households contribute the largest share to the financing of health care (28%) followed closely by the federal government (27%).
Spending on home health care (10.0%) grew the fastest, while spending on the capital-intensive category, structures and equipment, declined (– 2.7%).
In 2009, spending growth on prescription drugs rose for the first time since 2006, to 5.3%.
Hospital care (31%) and physician and clinical services (20%) account for slightly more than half of all health spending.