Health Care Spending Under Employer-Sponsored Insurance: A 10-Year Retrospective.

Area of Science:

• Health economics
• Health services research
• Public health policy

Background:

• Employer-sponsored insurance (ESI) is the primary source of health coverage for most Americans.
• Understanding healthcare spending trends is crucial for policy development and cost containment.
• Significant economic and policy shifts occurred between 2007 and 2016, including the Great Recession and the Affordable Care Act.

Purpose of the Study:

• To analyze per capita healthcare spending trends for ESI enrollees in the US from 2007 to 2016.
• To identify patterns and growth rates across major health service categories.
• To provide insights into the drivers of healthcare spending growth within the largest insured population.

Main Methods:

• Utilized national health care claims data from the Health Care Cost Institute.
• Analyzed total per capita spending on health services (excluding premiums).
• Calculated average annual growth rates for overall spending and specific service categories.

Main Results:

• Total per capita spending increased by 44% (4.1% average annual growth) between 2007 and 2016.
• Spending grew across all major health service categories, with outpatient services showing the highest average annual growth (5.7%).
• Spending growth rates fluctuated, slowing after 2009 but accelerating between 2014 and 2016.

Conclusions:

• Healthcare spending for ESI enrollees demonstrated a significant upward trend over a decade.
• Outpatient services represent a key area of increasing healthcare expenditure.
• These findings offer valuable context for evaluating the impact of economic and policy changes on US healthcare spending.