A new analysis by the Office of Actuaries of the Centers for Medicare and Medicaid Services (CMS) was published online today. health problemsestimates that US healthcare spending will increase 2.7% to $4.3 trillion, or $12,914 per person, in 2021. The 2020 growth rate is much lower than her 10.3% growth rate in 2020 as federal spending declined after a strong 2020 growth due to the COVID-19 pandemic.
The survey will also appear in the January 2023 issue. health problemsOnce the embargo is lifted, the link to the research abstract will be https://health‑policy.healthaffairs.org/january2023isssue/aop/martin.
Health spending rose by 2.7% in 2021, much slower than nominal Gross Domestic Product (GDP) growth, which increased by 10.7%, and is the fastest growth rate since 1984. Measured by GDP, it fell from 19.7% in 2020 to 18.3%. National health care expenditure per capita he increased by 2.6%.
The increase in total health care spending in 2021 reflects increased access to and coverage of medical goods and services as federal health care spending has declined. His federal COVID-19 funding he continued in 2021, but at a much lower level than in 2020. Spending on other federal programs, including the Provider Relief Fund and the Paycheck Protection Program, fell from $193.1 billion in 2020 to $71.9 billion in 2021 (a 62.7 percent decline). Federal spending on public health activities, including vaccine development and funding for medical facility readiness, fell from $135.8 billion in 2020 to $78.8 billion in 2021 (down 41.9%). Declines in both categories were the biggest contributors to the slowdown in overall healthcare spending growth in 2021.
Excluding spending related to federal public health and other federal programs, total national healthcare spending increased 7.6% in 2021 compared to 2.3% in 2020. This is due to the widespread availability of COVID-19 vaccination and increased use of medical goods and services.
“The rate of decline in health care spending in 2021 is largely due to lower federal spending on health care after a surge in 2020 in response to the COVID-19 pandemic,” says economist Anne B. says Martin. His CMS office at the Actuary, health problems paper. “Health care spending trends in 2021 will continue to impact many of the COVID-19 pandemic, including the federal government’s drastic cuts in his COVID-19 supplemental and public health care spending, and increased use of medical goods and services as a person. It is related to the inherent impact of seeking care at a higher rate than in 2020.”
The number of uninsured people declined for the second year in a row, from 31.2 million in 2020 to 28.5 million in 2021. Marketplace subscribers increased 13.4%, while Medicaid subscribers increased 11.2%. This is his biggest gain since 2015. At the same time, total Medicare and private health insurance enrollment increased by 1.7% and 0.3%, respectively. For private health plans, growth in marketplace enrollment was partially offset by declines in employer-sponsored enrollment.
Selection subject payer’s 2021 spending:
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Private health insurance (5.8% growth)— to reach $1.2 trillion in 2021, accounting for 28% of total healthcare spending. Private health insurance spending on medical goods and services grew 9.6% in 2021, driven by higher spending on hospital care, physician and clinical services, and dental services. Overall use of medical products and services increased in 2021 as demand for elective surgeries and procedures abandoned in 2020 has piled up. On a subscriber basis, private health insurance spending increased by 5.5% in 2021, following his 0.1% decline in 2020.
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Medicare spending (8.4% growth)— Will reach $900.8 billion in 2021, accounting for 21% of the country’s total healthcare spending. Total Medicare spending in 2021 increased at a faster rate of 8.4% compared to his 3.6% growth in 2020. Medicare spending per enrollee increased his 6.6% in 2021 compared to his 1.5% growth in 2020. Growth is 1.7% in 2020, driven by accelerated spending on hospital care, physicians and clinical services. Medicare spending on paid services accounted for 54% of total Medicare spending in 2021, rising 3.9% in 2021 after falling 4.1% in 2020. 15.6% increase in 2020.
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Medicaid spending (9.2% growth)— will reach $734 billion in 2021, accounting for 17% of the country’s total healthcare spending. Medicaid spending increased by 9.2% in 2021. This was about the same as his 2020 growth rate (9.3%), but much faster than the 2017-19 average rate of 2.9%. Medicaid spending on goods and services grew 9.7% in 2021 after his 6.2% growth rate in 2020. Medicaid spending growth per enrollee declined 1.8% in 2021 compared to 4.3% growth in 2020. and older registrants.
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Out-of-pocket costs (10.4% growth)— Will reach $433.2 billion in 2021, accounting for 10% of the country’s total healthcare spending. Out-of-pocket expenses increased by 10.4% in 2021 after he decreased by 2.6% in 2020. This is his fastest growth since 1985. This rapid growth is primarily due to increased usage. Rapid growth was most noticeable in dental services and durable medical equipment, which grew 18.0% and 31.6% respectively.
Selection subject goods and services’ 2021 spending:
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Hospital spending (4.4% growth)— Will reach $1.3 trillion by 2021, accounting for 31% of all healthcare spending. Hospital care spending will grow 4.4% in 2021, below his 6.2% growth in 2020. Slower growth in 2021 reflects lower spending on other federal programs, including the COVID-19 Relief Fund, which will drop to $19.4 billion in 2021. From $86.6 billion in 2020. In 2021, his use of hospital services increased significantly as his COVID-19-related restrictions on elective procedures and non-urgent care were lifted.
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Physician and Clinical Services (5.6% growth)— Spending reached $864.6 billion, reaching 20% of total healthcare spending in 2021. Spending growth slowed to 5.6% in 2021, following his 6.6% growth in 2020. Spending on independent billing laboratories, including spending related to COVID-19 testing, saw strong growth in 2020 and 2021.
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Retail prescription drugs (7.8% growth)— Spending will reach $378 billion in 2021, accounting for 9% of all healthcare spending. The increase in retail prescription drug spending is primarily due to increased prescription drug use due to a recovery in doctor visits and an increase in the number of new drugs prescribed in 2021.
