US health-care spending hit $3.3 trillion in 2016

US health-care spending hit $3.3 trillion in 2016
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Overall health-care spending in the U.S. topped $3.3 trillion last year, according to a new report released by the Trump administration.

The report from the Centers for Medicare & Medicaid Services (CMS) shows that health-care spending slowed in 2016. Spending grew by 4.3 percent last year, compared to 5.1 percent and 5.8 percent growth in 2014 and 2015, respectively.

"Basically, we saw two major things happening in 2014 and 2015. We had the enrollment expansion that impacted Medicaid and private health insurance with 10.2 million and 8.7 million people gaining coverage," a CMS official told reporters Wednesday. 

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"In addition, in 2014 and 2015 we saw strong and rapid spending growth in retail prescription drugs," the official added.

The CMS official attributed the slowdown in 2016 to people using medical goods and services when initially added to Medicaid and private insurance. 

"When those initial impacts start to wear off, that's when you’re going to see that slowdown that we saw in 2016," the official said.

The report found that health-care spending represented about 17.9 percent of the U.S. economy in 2016.

Private health insurance spending grew by 5.1 percent to $1.1 trillion last year, while Medicare spending grew by 3.6 percent to $672.1 billion. Medicaid spending slowed in 2016, increasing by 3.9 percent to $565.5 billion.