CMS estimates national spending on hospital care grew just 0.8% in 2022

The Centers for Medicare & Medicaid Services estimates national health spending grew 4.3% in 2022, including just 0.8% growth in spending for hospital care, as increases in federal spending for public health outpaced slower growth for most major payers, the agency reported June 14 in Health Affairs. The low growth in hospital spending was attributed in part to declines in utilization and pandemic-related public spending. CMS projects national health spending will average 5.4% per year through 2031, led by a 7.5% increase in Medicare spending as the last baby boomers enroll in the program and hospitals continue to face higher costs than clinicians to provide care. 
 
“Recent legislation is anticipated to affect trends in health insurance enrollment and health care spending over the next decade,” said lead author Sean Keehan, an economist in CMS’s Office of the Actuary. “Altogether, and consistent with its past trend, health spending for the next ten years is expected to grow more rapidly, on average, than the overall economy.”