Healthcare Spending in Minnesota Expected to Grow By 5.6% a Year Over the Next Decade

November 7, 2024

Between 2022 and 2031, healthcare spending in Minnesota is expected to grow at 5.6% per year compared to the previous 10 years, eventually reaching $108.7 billion. 

This prediction comes from the Health Economics Program (HEP) of the Minnesota Department of Health (MDH), which regularly prepares estimates of healthcare spending for Minnesota residents. The most recent reports detail healthcare spending for 2021 and projections from 2022 through 2031.  

In 2021, healthcare spending increased at a more rapid pace than the year before, rising 6.4% between 2020 and 2021, to reach $63.4 billion. Increased public program enrollment and hospital spending contributed to increased spending in 2021. 

Though both public and private payers’ spending will increase over the next 10 years, MDH projects that public payer spending will grow more rapidly than private payer spending (5.9% compared to 5.3% per year). Hospital spending is expected to remain a major driver of spending growth through 2031. 

Here are some other HEP-prepared materials on healthcare spending in Minnesota: 

• Infographic: This infographic summarizes key findings from the report and how many Minnesotans are experiencing healthcare cost growth. 

• Data Short Take: These presentation slides illustrate key trends in total spending, by payers, and by categories of service for calendar years 2017 through 2021. 

• Chartbook: These presentation slides were updated through calendar year 2021 and cover Minnesota’s healthcare spending by source of funds and categories of service, comparisons to national trends, and highlights of 2021 fully insured private market trends. 

• Supplemental Information Methodology  

For questions, email health.hep@state.mn.us.