New data from researchers at the University of Washington on state per person healthcare spending finds that between 2013 and 2019, Connecticut’s costs grew at the ninth lowest level among states. We dropped from seventh highest in the US in 2014 to eleventh in 2019. Our growth rate was lower than nearby comparator states and equal to Massachusetts’s rate. Hospital costs were the greatest contributor to rising per person healthcare spending in Connecticut.
More findings from the Chartbook:
- Connecticut’s average spending growth was high before the 2008/2009 recession, but it has slowed since and maintained slower growth. The ACA didn’t change the rate of growth.
- Connecticut spending is almost evenly divided between private, Medicaid, Medicare, and out-of-pocket spending. All Connecticut payers experienced modest growth in per person healthcare spending from 2003 to 2019.
- Medicare led Connecticut in spending growth from 2003 to 2019. Unlike prior years, Medicaid cost growth is ahead of private plans.
- Implementation of the Affordable Care Act reduced growth in per person Medicaid, Medicare, and out of pocket spending, but increased growth in private spending.
- Hospital spending is the largest portion of Connecticut spending, followed by physician/clinical care, and drugs.
- Between 2006 and 2019, Connecticut hospital costs grew faster than other service areas and were the main contributor to rising costs in Connecticut.
- From 2003 to 2019, Connecticut’s spending has risen less than New York, New Jersey, or New Hampshire, and equaled Massachusetts’ rate.
- Connecticut’s spending growth by payer is different than comparator states – lower for private plans and out of pocket costs, but unlike prior years, higher for Medicaid.
- Recently, Connecticut spending on hospitals has grown faster than most comparator states, while, unlike in the past, drug spending has grown more slowly.
Previous CT health spending Chartbooks from the CT Health Policy Project:
Chartbook: Prescription Drugs Driving CT Health Costs Across Payers
Chartbook: CT Drug Costs High and Growing Fast