In 2020, healthcare will account for nearly 20% of GDP – Healthcare Economist
U.S. health care spending increased by 9.7% in 2020 to reach US$4.1 trillion, far higher than the 4.3% growth rate in 2019. The acceleration in 2020 is due to a 36.0% increase in federal healthcare spending, which is mainly in response to the COVID-19 pandemic. At the same time, GDP fell by 2.2%, and the economic share of health care expenditures soared to 19.7%. In 2020, the number of uninsured persons has fallen, while at the same time, the types of insurance underwriting have undergone major changes.
Obviously, 2020 is a statistically unusual year, and it will be interesting to see how these numbers change after they become available in 2021 and 2022. It is worth noting that the trend of health care expenditure varies by payer. Although business and out-of-pocket expenses have declined, medical insurance and medical assistance expenditures have increased significantly, especially medical assistance. Despite this, private insurance still accounts for the majority of US medical expenditures. Private payers’ expenditures are 1,150 billion; medical insurance is 830 billion; medical assistance is 671 billion US dollars, and out-of-pocket expenses are 389 billion US dollars.
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