Medicare Spending Still on Rapid Trajectory

Growing demand for care, record levels of insured patients and swelling Medicare enrollment will drive up annual health care spending to $7.7 trillion by 2032, up from $4.8 trillion last year, according to new projections from federal actuaries.

Why it matters: Health care spending is projected to grow 5.6% per year over the course of a decade, outpacing expected annual inflation of 4.3%.

• That will help grow health spending to nearly 20% of gross domestic product by 2032, up from 17.3% in 2022, according to the actuaries' long-term outlook.