U.S. healthcare spending grew 7.2% to $5.3 trillion in 2024, according to new data from the Centers for Medicare & Medicaid Services. This growth outpaced the overall economy, pushing healthcare's share of gross domestic product to 18%. The increase follows a period of heightened medical use and shifting coverage patterns after the pandemic.

Driving the surge was a 3.5% rise in private health insurance enrollment, including a dramatic 30% jump in Affordable Care Act plans. CMS noted that a special enrollment period helped people who lost Medicaid coverage find new plans. Hospital pricing also climbed 3.4%, its fastest pace since 2007.

Government administration costs spiked 14.7%, largely due to Medicaid changes post-COVID. Medicaid administrative expenses alone jumped nearly 20%. Spending on home healthcare and non-medical professional services also rose sharply, reflecting broader demand for medical care across different sectors as the country fully reopened.