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Dental spending expected to grow through 2021

Jun 18, 2012

The annual rate of dental spending is projected to increase on average five percent through 2021, says a federal report released June 12.

New estimates from the Centers for Medicare & Medicaid Services’ National Health Expenditures (NHE) team project dental services expenditures to increase from $104.8 billion in 2010 to $179.8 billion in 2021. The projections were based on NHE figures released in January, 2012.  

Authors of the report note the supply-side effects included in the Affordable Care Act (ACA), whose ruling by the U.S. Supreme Court is expected any day now, are not included in their estimates. But even “without the impacts of the Affordable Care Act,” the NHE estimates steady gains in dental expenditures with or without the ACA expansion due to aging baby boomers.

Although the ACA does not become fully effective until 2014, dental expenditures are estimated to increase that first year from $107 billion to $107.9 billion. The expenditures will continue to increase through the next decade, particularly in 2014 and beyond when Medicaid and other ACA requirements take effect, peaking in 2021.

The report’s authors noted that aging baby boomers will be a bigger contributor to spending growth than the ACA.

Sources:  American Dental Association, Kaiser Health News, SCOTUS Blog, Wikipedia


 Copyright 2012, Bloom Insurance Agency, LLC

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