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State health spending grew about 6.2% in 2023, exceeding board benchmark, health data officer says
Summary
A Health Care Authority presentation shows Washington's total healthcare expenditure rose about 6.2% between 2022 and 2023 — above the Health Care Cost Transparency Board's 3.2% affordability benchmark — with prescription drugs and hospital outpatient care among top contributors. A deeper cost‑driver analysis is due in spring.
Vishal Chaudhry, chief data officer at the Health Care Authority, told the Universal Healthcare Commission on Dec. 11 that Washington's total healthcare expenditure grew roughly 6.2% from 2022 to 2023, outpacing the board's affordability benchmark of 3.2%.
The presentation framed the analysis around total healthcare expenditure (THCE), which includes claims, administrative overhead and smaller "other" spending categories. Chaudhry said the statewide THCE for calendar year 2023 is estimated near $56.9 billion and that per‑member, per‑year spending is about $8,000.
Why it matters: the board's benchmark is designed to reflect what consumers can afford. Chaudhry said that broad‑based growth above the benchmark suggests market‑wide pressures rather than isolated outliers: "82% of commercial carriers, 80% of Medicare Advantage carriers and 63% of providers exceeded the benchmark," he said. He added that markets differ in what drove growth: hospital outpatient services were a main contributor in commercial plans, prescription drugs led Medicare growth, and drugs plus professional fees were larger contributors in Medicaid.
Chaudhry highlighted several headline figures commissioners used to frame questions: prescription drug spending rose about 10% year‑over‑year; total medical expenditure (claims and related activity) made up roughly 90% of THCE; and the normalized per‑member per‑year growth rate was about 6.2%.
Commissioners pressed for detail on whether the rise reflected higher prices or more utilization. Chaudhry cautioned the presentation was an aggregate view and said a targeted cost‑driver analysis using the APCD (all‑payer claims database) is underway and planned for presentation in spring; that follow‑up will try to separate price vs. utilization effects.
At least one commissioner asked how the benchmark is calculated. Chaudhry said it is tied to measures of consumer burden (state median wage growth and state GDP) and is intended to reflect affordability, not industry cost structure.
The presentation prompted discussion about policy levers and next steps. Staff said the cost‑driver analysis will inform which levers (for example, prescription drug tools or hospital oversight) would be most effective. Chaudhry recommended commissioners and stakeholders submit more questions to the cost board's data team to refine the spring analysis.
The board posted the slide deck and appendices; Chaudhry said more granular tables and a supplemental analysis will be provided on request.
The commission recessed for a brief break after the presentation and scheduled a deeper follow‑up for spring.
