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Report: Home Health Care Spending Grew 6% in 2022

Report: Home Health Care Spending Grew 6% in 2022

Medicare Medicaid Private Duty

In 2022, U.S. health care spending reached $4.5 trillion, reflecting a 4.1% increase from the previous year, as reported by a Centers for Medicare & Medicaid Services (CMS) fact sheet. While surpassing the slow growth of 2021 (3.1%), this growth rate still falls short of the pandemic-driven peak in 2020 (10.6%). The ongoing upward trajectory was primarily fueled by increased Medicaid and private health insurance spending, albeit partially offset by a decline in federal pandemic-related funding.

The home health care sector, constituting 3% of total health care spending, saw a 6% increase, amounting to $132.9 billion. Growth in home health care spending was propelled by contributions from private health insurance, out-of-pocket expenses, and Medicaid.

The following provides a snapshot of trends in national health care spending for 2022.

Insurance Coverage:

  • The insured population reached an all-time high of 92%
  • Private health insurance enrollment increased by 2.9 million individuals
  • Medicaid enrollment increased by 6.1 million individuals
  • 26.6 million individuals were uninsured, down from 28.5 million in 2021

Spending by Service Type:

  • Hospital care saw a modest 2.2% increase to $1.4 trillion, a stark contrast to the 4.5% growth of 2021
  • Spending for physician and clinical services followed suit, growing 2.7% to $884.9 billion, compared to 5.3% in 2021
  • Outpatient services provided at nursing homes and continuing care retirement communities witnessed a healthy 5.6% increase to $191.3 billion

Payer Contributions:

  • Private health insurance remained the major contributor, responsible for 29% of total health care spending with a 5.9% growth, hitting $1.3 trillion
  • Medicare, despite representing 21% of total health care spending, saw a slower 5.9% increase to reach $944.3 billion
  • Medicaid, at 18% of the pie, experienced a substantial 9.6% expansion to $805.7 billion, fueled by a 7.2% increase in enrollment
  • Out-of-pocket spending, accounting for 11% of total health care spending, grew at a tempered 6.6% in 2022 to $471.4 billion, a noticeable slowdown from the 11.0% surge of 2021

Health Spending by Sponsor:

  • The federal government and households remained the top spenders, contributing 33% and 28% of the national health care budget, respectively
  • Federal government spending grew at a subdued 1.0% in 2022
  • Household health care spending, however, saw a significant 6.9% increase
  • State and local government health care expenditures rose by 6.5%, while private businesses saw a 6.0% increase in health care spending
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