Study: U.S. health spending falls for first time in 60 years in 2020, with 7% decline for hospital care

Annual spending for health care declined by 2% in 2020, including a 7% decline in spending for hospital care, as a result of the COVID-19 pandemic, according to a preliminary analysis by Altarum.
That’s the first decline in annual health spending since at least 1960, when the government began tracking it. The decline for hospital care was second only to the decline for dental services (20%). While most health care providers saw declines, spending on prescription drugs rose by 6.1%.
The analysis excludes certain spending categories, such public health, capital and the net cost of health insurance; and does not include Coronavirus Aid, Relief, and Economic Security Act payments, the authors note.
Related News Articles
Headline
A JAMA study published yesterday analyzed the health characteristics of individuals projected to lose Medicaid coverage due to work requirements included in…
Headline
The Centers for Medicare & Medicaid Services Sept. 30 released guidance to states clarifying its interpretation of a provision that…
Headline
An analysis published Sept. 30 by KFF found that Health Insurance Marketplace enrollees who currently benefit from the enhanced premium tax credits would pay…
Headline
President Trump today announced the first agreement with a major pharmaceutical company, Pfizer, to bring American drug prices in line with the lowest paid by…
Headline
The AHA Sept. 29 sent recommendations to the Department of Health and Human Services and the Centers for Medicare & Medicaid Services to help ensure…
Headline
The Census Bureau reported (https://www2.census.gov/library/publications/2025/demo/acsbr-024.pdf) that the uninsured rate increased nationally to 8.2% in 2024…