Why This Newsletter

The Federal Office of Actuary publishes in December the “official” estimates of USA healthcare spending for the prior calendar year. This information is published in a report referred to as the National Health Expenditures (NHE) report. This expense information could be of interest to companies.. Below is a summary of the publication for 2022, the most current NHE report.

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USA health care spending grew 4.1% to reach $4.5 trillion in 2022, faster than the increase of 3.2% in 2021, but much slower than the rate of 10.6% in 2020. The growth in 2022 reflected strong growth in Medicaid and private health insurance spending that was somewhat offset by continued declines in supplemental funding by the federal government associated with the COVID-19 pandemic.

Federal COVID-19 supplemental funding to the health sector through the Provider Relief Fund and the Paycheck Protection Program was highest during the initial year of the pandemic and continued to affect health care expenditures in 2021 and 2022. Funding to the health sector through these two programs was $174.6 billion in 2020, but just $2.0 billion in 2022.

In 2022, the insured share of the population reached 92% (a historic high). Private health insurance enrollment increased by 2.9 million individuals and Medicaid enrollment increased by 6.1 million individuals. In 2022, 26.6 million individuals were uninsured, down from 28.5 million in 2021 (a difference of 1.9 million individuals).

USA Gross domestic product (GDP) continued to increase at strong rates of growth in both 2021 and 2022, increasing 10.7% and 9.1%, respectively. With a lower rate of health care spending growth of 4.1% in 2022, the share of GDP devoted to health care fell to 17.3% in 2022, lower than both the 18.2% share in 2021 and the highest share in the history of the National Health Expenditure Accounts of 19.5% in 2020. During 2016-19 the average share was 17.5%.

Healthcare Spending by Type of Service

Hospital Care- 30% share.
Physician and Clinical Services- 20% share.
Retail Prescription Drugs- 9% share.
Other Health, Residential, and Personal Care Services- 6% share.
Nursing Care Facilities and Continuing Care Retirement Communities- 4% share.
Dental Services- 4% share.
Home Health Care- 3% share.
Other Professional Services- 3% share.
Other Non-durable Medical Products- 3% share.
Durable Medical Equipment- 2% share.

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About Rowinski Group

Founded in 2004, Rowinski Group LLC is a reimbursement and healthcare payer data analytics consultancy for medical device, digital health and diagnostics companies who are developing and selling their medical technology in the USA. Rowinski Group has offices in Silicon Valley – San Francisco Bay area and Chicago, Minneapolis, and Raleigh.

Rowinski Group has two core service offerings; securing codes and reimbursement on behalf of companies and applying healthcare payer data analytics to help companies solve business issues such as responding to questions from the FDA and Medicare, sales forecasting, Key Opinion Leader (KOL) identification etc.

Through these service offerings Rowinski Group help U.S. and international companies build their U.S. market share for the medical technology they are developing and selling. For more information visit https://reimbursement.consulting or contact Daniel Zimmerman d.zimmerman@reimbursement.consulting.