We believe a relentless pursuit for improved affordability and quality outcomes is critical to combat market pressures and improve experience and outcomes for all users of health care. The US healthcare system is facing immense cost pressures as expenditures rise at an unsustainable rate. Every part of the healthcare system is seeking ways to manage costs while improving quality. Oliver Wyman’s Affordability and Quality Impact practice is focused on addressing these challenges for our clients and their customers.
Expected annual growth in national health expenditures through 2030
Expected annual growth in US real GDP through 2026
Spent each year in the US on inappropriate care
Source: National Health Expenditure projections, CBO’s Economic Projections, Oliver Wyman analysis
By 2028, total healthcare expenditures will surpass $6 trillion with steady growth across all cost categories.
Healthcare costs from chronic care, long-term care, and end-of-life care are growing as the aging of Baby Boomers–"the Silver Tsunami"-raises the proportion of the population above 65 years old and increases the prevalence of chronic and behavioral health conditions.
Of Americans have at least one chronic condition–and this number is growing
Of American adults have multiple chronic conditions
Of Americans reported behavioral health symptoms in 2021 vs. 11% in 2019
Growth in Americans over 65 years old from 2014-2030
Source: Raghupathi, Wullianallur, and Viju Raghupathi. “An Empirical Study of Chronic Diseases in the United States: A Visual Analytics Approach” , CDC, US Census Bureau
Employers continue to see their healthcare costs climb which impacts their competitiveness. At the same time, employees are facing greater healthcare expenses as high-deductible plans become the norm.
Rate at which deductibles have grown related to wages
Source: Kaiser Family Foundation, US Bureau of Labor Statistics
Annual growth in individual premium
Historical growth rate of US CPI
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