Industry News

Recently, the Centers for Medicare & Medicaid Services (CMS) released their report on the National Health Expenditure Accounts (NHEA). The NHEA measures annual U.S. expenditures for health care goods and services, public health activities, government administration, net cost of health insurance, and investments related to health care.

According to the CMS, U.S. health care spending grew 4.1% in 2022 and reached $4.5 trillion, which was faster than the increase of 3.2% in 2021, but much slower than the increase of 10.6% in 2020. As a share of the gross domestic product (GDP), health care spending increased 9.1% in 2022. 

In 2022, health care spending for the broad categories of services and products include:

• Hospital care services spending increased 2.2% to $1.4 trillion, down from 4.5% in 2021;
• Physician and clinical services spending increased 2.7% to $884.9 billion, down from 5.3% in 2021; and
• Retail prescription drug spending increased 8.4% to $405.9 billion, up from 6.8% in 2021.  

In 2022, the growth in federal government spending increased 1.0%, compared to a decrease of 3.4% in 2021. Private businesses’ health care spending increased 6.0% in 2022, down from 7.6% in 2021; households’ health care spending increased 6.9% in 2022, up slightly from 6.8% in 2021; and state and local government health care spending increased 6.5% in 2022, up slightly from 6.2% in 2021.  

Further information is available here.