“National Health Care Spending Increased 7.2 Percent In 2024 As Utilization Remained Elevated,” by Micah Hartman, Anne B. Martin, David Lassman, and Aaron Catlin, Health Affairs
“Health care spending in the US reached $5.3 trillion and increased 7.2 percent in 2024, similar to growth of 7.4 percent in 2023, as increased demand for health care influenced this two-year trend. As in 2023, the use and intensity of health care goods and services continued to grow rapidly in 2024, particularly for hospital care, physician and clinical services, and retail prescription drugs. The insured share of the population remained relatively high in 2024, at 91.8 percent, after its peak in 2023 of 92.5 percent. Health care spending growth continued to outpace overall economic growth in 2024, and as a result, the health care share of the economy increased from 17.7 percent in 2023 to 18.0 percent in 2024.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
Finally, we have the latest National Health Expenditure data covering 1970 through 2024. Usually this information is available in December or earlier in January. This is the source we use to compile the Center’s annual “So What if the Government Pays for Most Long-Term Care” LTC Bullet. The Health Affairs article linked above analyzes the new NHE data. It gives LTC short shrift as in past years. Here’s the relevant section.
“In 2024, mainly as a result of declining enrollment, all Medicaid services except home health care and nursing and residential care facilities experienced growth that was slower than growth in 2023. … Services used for long-term care (the population most likely to use this type of care was more likely to retain Medicaid coverage)—including other health, residential, and personal care services; home health care; and nursing and continuing care retirement communities—continued to experience strong growth in 2023 and 2024 (8.9 percent and 9.5 percent, respectively; data not shown).”
Wow, LTC cost growth is surging. We’ll analyze the new data and report.