MN Health Care Spending Rising Faster, But Remains Historically Low

Overall health care spending in Minnesota rose 4-percent in 2012.

A new report from the State Health Department indicates the rate of increase was double the rate from 2011, but it was still low by historical standards. In fact, the health department says the 2012 growth rate was the third lowest recorded since it began tracking rising healthcare costs in the mid-1990s.

"By historic standards Minnesota saw low growth in health care spending in 2012," said Minnesota Commissioner of Health Dr. Ed Ehlinger. "However, projections of future spending highlight that we must continue to focus on disease prevention and creating healthy communities if we are going ensure sustainability of health care costs over the long term."

The report shows overall healthcare spending in the state totaled $39.8 billion dollars in 2012. That works out to just over $7400 per person, which is about $1000 below the national average. Health care spending accounted for 13.5-percent of Minnesota’s economy, while nationally, healthcare spending represents over 16-percent of GDP.

The Health Department is projecting health care spending will rise to over $76 billion per year by 2022, which represents an average annual increase of about 6.7-percent.