The Centers for Medicare & Medicaid Services (CMS) and the Office of the Actuary released a report of the 2022 health expenditures in the United States.
Highlights of the report follow:
- Healthcare spending grew 4.1 percent to reach $4.5 trillion in 2022, faster than the increase of 3.2 percent in 2021, but much slower than the rate of 10.6 percent in 2020. The growth in 2022 reflected strong growth in Medicaid and private health insurance spending that was somewhat offset by continued declines in supplemental funding by the federal government associated with the COVID-19 pandemic.
- In 2022, the insured share of the population reached 92 percent (a historic high). Private health insurance enrollment increased by 2.9 million individuals, and Medicaid enrollment increased by 6.1 million individuals. In 2022, 26.6 million individuals were uninsured, down from 28.5 million in 2021 (a difference of 1.9 million individuals).
- Gross domestic product (GDP) continued to increase at strong rates of growth in both 2021 and 2022, increasing 10.7 percent and 9.1 percent, respectively. With a lower rate of healthcare spending growth of 4.1 percent in 2022, the share of GDP devoted to healthcare fell to 17.3 percent in 2022, lower than both the 18.2 percent share in 2021 and the highest share in the history of the National Health Expenditure Accounts of 19.5 percent in 2020. During 2016-19 the average share was 17.5 percent.
- Federal COVID-19 supplemental funding to the health sector through the Provider Relief Fund and the Paycheck Protection Program was highest during the initial year of the pandemic and continued to affect healthcare expenditures in 2021 and 2022, although at reduced levels. Funding to the health sector through these programs was $174.6 billion in 2020, but just $2.0 billion in 2022.
- Spending on physician and clinical services, which make up 20 percent of the spending, increased 2.7 percent to $8,84.9 billion in 2022, slower than the increase of 5.3 percent in 2021. Spending growth for physician and clinical services slowed in 2022 for the major payers—Medicare, Medicaid, private health insurance, and out-of-pocket. Slower growth in the use of services and in physician prices contributed to the slower growth in 2022.
- Spending for other professional services, a 3 percent share, includes establishments of independent health practitioners (except physicians and dentists) that primarily provide services, such as physical therapy, optometry, podiatry, or chiropractic medicine. Spending for other professional services reached $140.6 billion in 2022 and increased 5.1 percent, a slower rate of growth compared to 13.2 percent in 2021. The slowdown was driven by slower growth in Medicare, private health insurance, and out-of-pocket spending, coupled with reduced supplemental COVID-relief funding.
- Retail spending for durable medical equipment, a 2 percent share, which includes items such as contact lenses, eyeglasses, and hearing aids, increased 5.1 percent in 2022 to $67.1 billion, following much faster growth of 18.6 percent in 2021. The slowdown in 2022 was driven by slower growth in out-of-pocket and private health insurance spending.
- Private health insurance spending, a 29 percent share, increased by 5.9 percent in 2022 (to $1.3 trillion), which was slightly slower than the increase of 6.3 percent in 2021. For hospital care, physician and clinical services, and dental services, private health insurance expenditures grew more slowly in 2022, following stronger growth in 2021. Private health insurance enrollment increased 1.5 percent, or 2.9 million individuals, in 2022—the fastest increase since 2015.
- Medicare spending (21 percent share) increased 5.9 percent to reach $944.3 billion in 2022, a slower increase than in 2022 when Medicare spending increased 7.2 percent. Medicare fee-for-service expenditures declined by 1.9 percent in 2022, while Medicare private health plan spending (accounting for 50 percent of total Medicare spending) increased 15.1 percent. Total Medicare enrollment increased 1.9 percent in 2022 compared to growth of 1.7 percent in 2021 (or by 1.2 million individuals), with enrollment in Medicare private plans increasing 8.5 percent and fee-for-service enrollment declining 3.0 percent.
- Medicaid spending (18 percent share) increased 9.6 percent to $805.7 billion in 2022, the third consecutive year of growth above 9 percent. Medicaid enrollment grew 7.2 percent in 2022 after increasing 11.1 percent in 2021 and 4.6 percent in 2020. This amounts to about 18 million individuals gaining Medicaid coverage between 2019 and 2022. In 2022, the federal government and households accounted for the largest shares of national health spending (33 percent and 28 percent, respectively), followed by private businesses (18 percent), state and local governments (15 percent), and other private revenues (6 percent).
To read the report, visit the CMS website.
https://www.cms.gov/newsroom/fact-sheets/national-health-expenditures-2022-highlights