Health Care Spending in U.S. Grew at Lowest Rate in a Decade

Average annual out-of-pocket spending increased from $427 in 1996 to $741 in 2005, according to the report.

"Chronic conditions are more than just a health issue for the elderly -- they are a household economics issue for every American," Paez said in a prepared statement. "Taking the time and making the effort to prevent diseases such as high blood pressure and diabetes will save Americans money and increase their quality of life."

Paul Precht, director for policy and communications at the Medicare Rights Center, said he thinks health-care costs will continue to rise, and the lower rate in the increase in spending on prescription drugs will be short-lived.

"The slower growth in prescription drug spending, largely attributed to the increased substitution of generics for blockbuster brand name drugs whose patents expired, underscores the importance of generic drugs in restraining cost growth for medical care," Precht said.

"For Congress, they should focus attention on creating a pathway for FDA approval of generic biologics that creates comparable savings and on removing legal and regulatory obstacles that retard the introduction of generics," he added.

Also, Precht said, there are no signs of slower growth in price increases for brand name drugs. "In addition, the sharp rise in Part D premiums for 2009 shows that the period of relatively slow growth in Part D costs (2006-2007 in this report) is over," he said.

More information

For more on health-care costs in the United States, visit the Kaiser Family Foundation.

SOURCES: Paul Precht, director, policy and communications, Medicare Rights Center, Washington, D.C.; Jan. 5, 2009, teleconference with Micah Hartman, statistician, U.S. Centers for Medicare & Medicaid Services, Baltimore; January-February 2009 Health Affairs