Trends In Medical And Pharmacy Spending In The Affordable Care Act Markets, 2015-19.

To control rising costs, it is critical for payers, providers, and policy makers to understand trends in health care spending. Using data from both on- and off-exchange Affordable Care Act (ACA)-compliant small-group and individual insurance markets in the United States for the period 2015-19, we analyzed the contributions of trends in utilization, unit price, and service mix to growth in overall health care spending. Overall annual growth trends in health care spending per member per month during that period were 4.0 percent in the small-group market and 1.1 percent in the individual market. In the small-group market, professional and outpatient facility services contributed the most to spending growth, driven by unit price increases. In the individual market, pharmacy and outpatient facility services accounted for the greatest growth in spending, driven by a combination of unit price increases and changes in the mix of services. Addressing these contributors to growth can help contain costs and premiums and provide more stability to ACA-compliant insurance markets.