Tracking success
Washington's cost growth benchmark sets a goal for how much health care spending should increase each year aligned with projected increases in wages and the state economy. Health care carriers and providers were engaged in setting the benchmark and have committed to try to stay under it to make health care more affordable.
Understanding health care spending in Washington
Each year, the Health Care Cost Transparency Board (Cost Board) collects data from the largest health insurance carriers in Washington to shine a light on what we are collectively spending on health care in our state, and how much health care spending is growing each year.
Data collected in 2022 show health care spending grew substantially between 2017 and 2019.
Washington State health care spending growth, 2017-2019
- Long description: Washington State health care spending growth, 2017–2019
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This bar chart from Washington Benchmark Report, 2017-2019 shows the total spending on health care in Washington from 2017-2019.
There are three bars for years 2017, 2018, and 2019, with a dashed line showing the percent increase between each year.
- In 2017, total spending on health care across all markets—Medicare, Medicaid, and private—was $42.0 billion.
- In 2018, it was $45.0 billion, an increase of 7.2% from 2017.
- In 2019, it was $47.9 billion, an increase of 6.2% from 2018.
The rate of growth varied across each health insurance market: commercial, Medicare, and Medicaid.
Washington State health care spending growth by market, 2017-2019
- Long description: Washington State health care spending growth by market, 2017–2019
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This bar chart from Washington Benchmark Report, 2017-2019 shows the by how much total spending on health care in Washington increased from 2017-2019, differentiated by market.
There are three sections of bars for the years 2017, 2018, and 2019. Each section has three bars, one for Medicaid, Medicare, and commercial. It shows the percentage increase in spending between each year for each market.
- Medicaid spending increased by 13.8% from 2017-2018, and by 11.9% from 2018-2019.
- Medicare spending increased by 3.0% from 2017-2018, and by 2.9% from 2018-2019.
- Commercial spending increased by 4.5% from 2017-2018, and by 4.0% from 2018-2019.
The Cost Board has set a cost growth benchmark for five years, starting in 2022 with a target growth rate of 3.2%. Read the first benchmark report, Health care spending growth in Washington, 2017-2019, and the report summary to learn more.
Measuring progress toward the benchmark
Beginning in 2024, the Cost Board will publish an annual spending report which will show whether our health system has met the benchmark for the reported year—in other words, whether the health system has been successful at reining in spending.
The annual spending reports will also record how each insurance market (commercial, Medicare, and Medicaid) and each individual health insurance carrier and large health care provider is measuring up against the benchmark.
HCA is currently reviewing data from 2020-2022, which was submitted in May 2024. This period includes the first benchmark year, 2022. We expect to present a report to the Cost Board by the end of 2024.