For the third straight year, Uncle Sam’s healthcare tab grew faster than the economy. National health spending hit $5.7T in 2025 — a 7.3% jump as Americans caught up on care deferred during the pandemic. Healthcare now claims 18.4% of US GDP, and federal actuaries see that rising for years.

• Prescription drug spending rose 11.1% to $518.7B — fueled by GLP-1 weight-loss drugs that 1 in 8 Americans now use, alongside rising cancer treatment costs.
• Hospital care jumped 8.2% to $1.8T, logging the highest spend of any individual medical category — followed by physician and clinical services at $1.2T, up 6.2%.

The prognosis: The decade ahead looks even more demanding. Through 2034, Medicare is projected to grow by up to 9% annually — the fastest rate among payer types. That growth reflects the youngest Baby Boomers aging into the program, pushing Medicare’s share of total US health spending from 31% to 33%. However, Medicaid is set to head in the other direction, cooling this year after enrollment cuts in the GOP’s budget reconciliation law. Add it up, and national health spending will hit 20.6% of GDP by 2034. That’s a $9T tab, and Congress is still looking for the receipt.