By Amina Niasse

NEW YORK, Jan 14 (Reuters) - U.S. healthcare spending rose by 7.2% to $5.3 trillion in 2024 from $4.9 trillion in 2023, driven by increased health insurance enrollment and a jump in use of medical services, particularly in private health insurance plans, the U.S. Centers for Medicare & Medicaid Services said on Wednesday.

CMS said healthcare spending accounted for 18% of U.S. gross domestic product in 2024, up from 17.7% in 2023 and outpacing U.S. economic growth. The agency oversees Medicare plans for people aged 65 and older or with disabilities, and Medicaid for low-income Americans.

Spending on government administration including services involving Medicaid and Medicare, had the biggest increase, rising 14.7% in 2024 from a 7.8% increase a year earlier.

The agency said changes in Medicaid coverage after COVID-era policies lapsed were a big contributor to the higher administrative costs, with Medicaid government administration costs alone increasing 19.8% in 2024 after a 9.2% rise in 2023.

Spending on services provided by non-medical or dental professionals and home healthcare followed, with increases of 10.8% and 10.2%, respectively.

CMS said hospital pricing also contributed to elevated spending in 2024, increasing 3.4%, the highest rate since 2007. Spending on hospital care services totaled $1.6 trillion, rising 8.9%, a deceleration in growth from 10.6% in 2023.

Affordable Care Act enrollment in 2024 increased over 30% to 21.1 million people from 16.2 million in 2023. Overall private health insurance enrollment, which includes Obamacare plans, increased 3.5% in 2024 to 214.3 million people covered from 207 million in 2023.

A 2024 special enrollment period that allowed people who had been kicked off Medicaid to enroll in ACA plans also contributed to increases in Obamacare enrollment, the agency said.

(Reporting by Amina NiasseEditing by Bill Berkrot)

((amina.niasse@thomsonreuters.com;))