Post pandemic healthcare spending IS large but has dropped….
The U.S. spent $4.5 trillion on health care in 2022 according to federal figures, a sign the country is settling back into pre-pandemic rates.
Health spending grew by 4.1 percent in 2022, according to data the Centers for Medicare and Medicaid Services (CMS) released late Wednesday. The U.S. spent on average $13,493 per person on health care 2022.
While still higher than 2021, the growth was much slower when compared to 2020.
In addition, an all-time high of 92 percent of the country was insured in 2022. But that historic number may not last, as it was driven by strong Medicaid enrollment, and the U.S. is unwinding its pandemic-era Medicaid protections.
The 2022 numbers reflected strong growth in Medicaid and private health insurance spending that was somewhat offset by continued declines in federal government spending on COVID-19 relief.
Funding to the health sector through the Paycheck Protection Program and the Provider Relief Fund was $174.6 billion in 2020 but just $2 billion in 2022….
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The 4.1 percent for 2022 is much more in line with 4.4 percent average annual growth pre-pandemic during 2016–2019….