CMS estimated that U.S. healthcare spending grew 4.1% in 2022 to $4.5 trillion, Health Affairs reported Dec. 13.
Eight things to know, according to the report:
1. The 4.1% increase in healthcare spending was much slower than growth in the nominal gross domestic product, which increased 9.1%.
2. The share of the economy devoted to healthcare spending, as measured by the GDP, declined to 17.3%, lower than the 18.2% share in 2021 and the highest share in history of 19.5% in 2020.
3. Healthcare spending growth was faster than the 3.2% growth in 2021 but much slower than the 10.6% rate in 2020.
3. The growth in healthcare spending in 2022 reflected a slowdown in personal healthcare spending (goods and services) that was more than offset by faster growth in non-personal healthcare spending. Non-personal healthcare spending accelerated in 2022, due largely to a turnaround in the net cost of insurance.
4. Medicaid spending increased 9.6% in 2022 after growth of 9.4% in 2021 and 9.3% in 2020.
5. Private health insurance spending increased 5.9% in 2022 after an increase of 6.3% in 2021 and a decline of 0.8% in 2020.
6. Out-of-pocket spending increased 6.6% in 2022 after an 11% increase in 2021.
7. The number of uninsured people dropped for the third consecutive year, from 28.5 million in 2021 to 26.6 million in 2022. A record-high 92% of people were insured in 2022.
8. Hospital spending increased by 2.2% to $1.4 trillion, representing 30 percent of overall healthcare spending. Hospital care expenditures grew by 2.2% in 2022, lower than the 4.5% growth in 2021. The slower growth was attributed to a decrease in hospital care spending by private payers, Medicare and Medicaid and by a decline in other private revenues.