In 2014, implementation of the Affordable Care Act (ACA) will cause a spike in US health spending; analysts project an increase of 7.4% over 2013. This increase will break a near-decade-long period of slower growth for national health spending. In 2009, health spending increased only 3.8%, an all-time low. The 2010 increase was only slightly higher at 3.9%. This slow growth in 2010 health spending matched the growth in the economy as it recovered from recession, keeping health care's share of GDP unchanged at 17.9%.

Health Care Costs 101, part of CHCF's California Health Care Almanac, details how much is spent on health care in the US; which services are purchased; and what proportions are financed by households, government, and business.

Highlights for 2010 include:

• Nearly $2.6 trillion was spent on health care in the US in 2010, or $8,402 per person.
• In 2010, the federal government became the largest financer of health care (29% of spending), surpassing households (28%) for the first time.
• Spending on Medicare and Medicaid together consumed 23% of the federal budget and exceeded defense spending by three percentage points.
• The federal government spent half of its revenues on health care, while health care costs consumed only 6% of personal income.
• Public health insurance paid for 39% of the nation's health care; private health insurance paid for one-third. Out-of-pocket spending by consumers accounted for 12%, a figure that has been declining for many years.

An interactive graphic shows the change in health care spending by payer from 1960 to 2010.

The complete report, a quick reference guide, and data file are available as Document Downloads. Also available are the California addendum and past editions. To request previous editions of these reports, contact CHCF Publications.