As U.S. Population Ages, Health Care Spending Rises

Americans’ health care spending has grown faster than our overall spending for some years. Now new numbers published in the journal Health Affairs carry a clear warning for patients and employers: Health care costs are rising at a rate that’s simply unsustainable.

Health care spending grew a hefty 8.2% in 2024, which is nearly 3 percentage points faster than growth in the gross domestic product, which measures all spending. Americans are expected to spend 7.1% more for health care in 2025.

The growth reflects higher use of health care services (and more expensive ones) since the COVID-19 pandemic. Some of that increase is attributed to the aging population, while some resulted in people postponing care until the pandemic subsided.

Projections show that Americans’ health care spending will continue to grow through 2033. The rate might slow with Medicaid cuts or if millions lose insurance because Congress allows tax credits tied to the Affordable Care Act to expire.

That’s the macro view.

What about you? Have you seen your health care spending rise? Are you concerned about how you’ll afford health care in the future? Share your personal story with Voices for Affordable Health. #MyVoiceMyHealth.