HEALTH TAB HEALTH TAB Health care spending this year has grown at its slowest rate in a half-century, a sign that people are forgoing medical care during the recession, a USA TODAY analysis of government data finds. Spending on doctors, hospitals, drugs and other medical care climbed at a 2.7% annual rate per person in the first half of 2010, the smallest increase since the Bureau of Economic Analysis began tracking medical care in 1959. When inflation is taken into account, spending per person actually fell 0.2% in the first six months of the year. That's the first decline since the government began adjusting for inflation in 1995. CANCER: Costs double, in line with health spending trend MILITARY: Health care costs booming HEALTH CARE: Americans decrease spending The figures cover the $2 trillion spent delivering health care to Americans— $6,565 per person — and paid for by employers, insurers, the government and individuals. The drop was not predicted in government forecasts and appears to be the result of a bad economy and high unemployment, health care experts say. "It's the recession effect," says Karen Davenport, health policy director at the liberal Center for American Progress. People who've lost insurance, and even some with coverage, appear to be cutting back on medical spending, she says. The drop in health care spending is a sharp contrast to the last recession in 2001, when health care costs accelerated during the downturn. Medical spending is down this year in key areas: •Prescription drugs. Americans spent 1.6% per person less after adjusting for inflation. The increased use of low-cost generic drugs and the purchasing power of insurers have driven costs down, says Richard Smith, senior vice president of the Pharmaceutical Research and Manufacturers of America, an industry group. •Hospitals. The American Hospital Association attributes the spending decline — a 1.1% drop — to patients forgoing care during the recession. •Dental care. Americans spent 0.9% less at the offices of dentists and orthodontists. The recession has shifted some people from private insurance to government programs, says health care economist Robert Brook of the conservative Heritage Foundation. That may have cut overall spending because the government generally pays lower rates than private insurers, he says. Medicare, Medicaid and other government programs paid a record 46.1% of the nation's medical bill in the second quarter, up from 42.3% before the recession began in December 2007. Medicare, which covers seniors, has grown since 2007 by 3 million to 47 million enrollees, the program's actuary estimates. Medicaid and the Children's Health Insurance Program, the two big programs for the poor, cover 59 million people, up 7 million from 2007. Guidelines: You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. Read more