Proactive Care Could Save Medicare $500B and the U.S. $2.2T Annually

A new report, Safeguarding Medicare’s Future: Proactive Care Could Unlock More Than $500B in Annual Savings, finds that strategic investments in disease prevention, early detection, and other proactive measures could save the U.S. healthcare system up to $2.2 trillion annually by 2040. Such investments could also help Medicare save more than $500 billion a year on medical and prescription drug claims while strengthening the program’s long-term financial outlook.

The analysis urges urgent, coordinated action to align financial incentives toward prevention and proactive care. Deloitte argues that moving away from the current reactive, “break-fix” model of care—which waits until people become sick before intervening—would not only generate economic benefits but also improve health outcomes and protect Medicare’s future. At present, more than 62% of healthcare spending, or about $3 trillion annually, goes toward treating illness and deteriorating health, while only 22% is directed at preventive services and wellness activities. Without systemic change, healthcare expenditures are projected to grow by an average of 5.8% per year, rising from 17.6% of GDP to 20.3% by 2033.

Deloitte’s report highlights the powerful return on investment that proactive measures can deliver. The greatest savings opportunities lie in preventing and managing chronic conditions such as diabetes, heart disease, and cancer, which together represent a significant share of Medicare spending. Targeted programs addressing these diseases could reduce U.S. healthcare costs by more than $700 billion annually. For example, proactive measures in managing heart disease can delay its onset by nearly seven years and shorten the severe illness stage from almost five years to just over one.

The benefits of proactive care would extend across the healthcare ecosystem. Medicare could reduce long-term spending and improve solvency, employers could maintain a healthier and more productive workforce, and individuals could enjoy lower lifetime healthcare costs alongside a higher quality of life. Achieving this transformation, however, will require government, employers, health plans, and health systems to work together. The report emphasizes that public agencies can accelerate the shift by incentivizing commercial health plans and Medicare to invest more heavily in prevention through new payment models and reimbursement structures designed to reward proactive care.