National health spending rose by 3.4 percent in 2021 compared to 2020 because of less support from the federal government, a Feb. 18 report from consulting organization Altarum found.
Six additional findings:
1. When support funds were removed from 2020 and 2021 healthcare spending estimates, growth was at 8.4 percent year over year while the economy continued to recover.
2. With the government's assistance, 2021 health spending was only below 2020 levels in March 2020. Without the assistance, 2021 spending was below 2020 levels throughout most of 2020 and into February 2021.
3. In December 2021, health spending with federal support included accounted for 18.8 percent of GDP, while it accounted for 17.8 percent without federal support included. In all of 2021, health spending was 18.5 percent of GDP with federal support and 18.1 percent without it.
4. The report also found that prices paid by private insurers for healthcare services rose 3.2 percent in January year over year. Medicare and Medicaid price growth were 1.1 percent and 1.6 percent, respectively.
5. Additionally, 18,000 healthcare jobs were added in January, but most of the growth was in ambulatory care settings. Hospitals added 3,400 jobs.
6. Total health employment is 2.3 percent below February 2020 levels, before the pandemic. Hospital employment is 2 percent below February 2020 levels. Last month, these numbers were 2.7 percent and 1.8 percent, respectively.
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