In 2009, national health care spending grew at the slowest pace seen in half a century. The 4.0% increase over prior year spending extended a slowing trend that has been underway since 2003. However, the modest growth in health spending still outpaced the economy, and health care's share of GDP rose to 17.6%, a full percentage point above 2008. Total health care spending in 2009 reached $2.5 trillion, or $8,086 per person. Although the Great Recession came to an official close in mid-2009, it had a pronounced effect on the nation's health spending.

Health Care Costs 101, part of the California HealthCare Foundation's California Health Care Almanac, provides general background on U.S. health spending. It details how much we spend, on which services, and what proportion is paid directly by consumers.

Other highlights include:

• Health spending grew 4.0% in 2009, an all-time low, and the smallest annual increase on record.
• The federal government's spending on health care jumped to 54% of its revenues, as its health spending increased by 17.9% and revenues declined by a similar amount.
• 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.

The complete report, as well as quick reference guides to the national and California data highlights, is available under Document Downloads. Also available are past editions.