Health

Healthcare spending hits $4.3 trillion in 2021 but growth slows


Total U.S. healthcare spending hits $4.3 trillion in 2021, up just 2.7% from a year earlier. The Centers for Medicare and Medicaid said Wednesday that its COVID-19 relief fund has waned.

Spending on healthcare grew 10.3% in 2020—biggest growth rate since 1984—as the federal government allocates $193.1 billion designed to offset pandemic-related supplier losses.

Supplier Relief Fund and Paycheck Protection Program funding fell 63% to $71.9 billion last year. Federal spending on public health, including funding for vaccine development and health facility preparedness, fell to $78.8 billion, from $135.8 billion. la in 2020.

As a result, spending on healthcare in 2021 accounts for 18.3% of the nation’s gross domestic product, down from 19.7% in 2020.

“Health care spending trends in 2021 are linked to many of the unique impacts of the COVID-19 pandemic, including significant reductions in public and complementary health costs due to COVID-19.” federal government, while increasing the use of health care goods and services as people seek care at a higher rate than in 2020,” said Anne Martin, an economist at Actuary’s CMS office and lead author of the analysis published Wednesday in the journal Health Affairs, wrote in the report.

Excluding spending related to public health and related federal programs, national health spending increased 7.6% in 2021 compared to 2.3% in 2020 when COVID vaccines were in place. -19 is widespread and health care use recovers.

Spending on hospitals, doctors and prescription drugs all increased, but in most cases the percentage increase was smaller than a year earlier. Hospital spending, which amounted to $1.3 trillion and accounted for 31% of total healthcare spending, increased 4.4%, compared with 6.2% in 2020.

Physician and clinical spending, which amounted to $864.6 billion and accounted for 20% of total healthcare spending, increased by 5.6%, compared with 6.6% in 2020.

Spending on prescription drugs, which totaled $378 billion and accounted for 9% of total healthcare spending, increased by 7.8%, from 3.7% in 2020.

Total spending on Medicare is $900.8 billion, or 21% of US healthcare spending. Spending up 8.4%, compared to 3.6% in 2020. Medicare enrollment growth slowed to 1.7%, down from 2.1%.

Medicaid spending accounted for 17% of total spending, at $734 billion. Medicaid spending will increase by 9.2% in 2021, similar to 2020. Medicaid enrollment will increase by 11.2% in 2021, as a result of the law keeps people registeredD in the program regardless of changes in income.

The number of uninsured people fell for the second year in a row, falling from 31.2 million in 2020 to 28.5 million in 2021.

The number of people applying for employer-sponsored insurance fell for the second year in a row, falling by 400,000 in 2021. Private employer spending on health care rose 6.5% after when it fell 2.9% in 2020. Much of that increase was due to a 6.5% increase in private health insurance premiums in 2021 after a 3% decrease in 2020.

Out-of-pocket spending of patients to grow 10.4% in 2021—the fastest growth rate since 1985—after falling 2.6% in 2020.

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