By 2024, the government (federal and state & local) share of health spending is expected to fall to 46 percent as COVID-19 supplemental funding is expected to wane, down from an all-time high of 51 percent in 2020. Following the declines observed in 2020, health care utilization is expected to rebound starting in 2021 and normalize through 2024.NHE growth in 2021 is projected to have slowed to 4.2 percent (down from 9.7 percent growth in 2020) as federal COVID-19 supplemental funding declined substantially. Near-term NHE patterns are significantly influenced by the COVID-19 pandemic.On average over 2021-30, National Health Expenditures (NHE) and Gross Domestic Product (GDP) are both projected to grow 5.1 percent per year as a result, the projected NHE share of GDP in 2030 (19.6 percent) is similar to 2020 (19.7 percent).The private business share of health spending accounted for 17 percent of total health care spending, state and local governments accounted for 15 percent, and other private revenues accounted for 7 percent.įor further detail see NHE Tables in downloads below. The largest shares of total health spending were sponsored by the federal government (34 percent) and the households (27 percent).Prescription drug spending increased 7.8% to $378.0 billion in 2021, faster than the 3.7% growth in 2020.Physician and clinical services expenditures grew 5.6% to $864.6 billion in 2021, slower growth than the 6.6% in 2020.Hospital expenditures grew 4.4% to $1,323.9 billion in 2021, slower than the 6.2% growth in 2020.Other Third Party Payers and Programs and Public Health Activity spending declined 20.7% in 2021 to $596.6 billion, or 14 percent of total NHE.Out of pocket spending grew 10.4% to $433.2 billion in 2021, or 10 percent of total NHE.Private health insurance spending grew 5.8% to $1,211.4 billion in 2021, or 28 percent of total NHE.Medicaid spending grew 9.2% to $734.0 billion in 2021, or 17 percent of total NHE.Medicare spending grew 8.4% to $900.8 billion in 2021, or 21 percent of total NHE.NHE grew 2.7% to $4.3 trillion in 2021, or $12,914 per person, and accounted for 18.3% of Gross Domestic Product (GDP).

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