National Health Care Spending In 2021: Decline In Federal Spending Outweighs Greater Use Of Health Care

Health care spending in the US grew 2.7 percent to reach $4.3 trillion in 2021, a much slower rate than the increase of 10.3 percent seen in 2020. The slower rate of growth in 2021 was driven by a 3.5 percent decline in federal government expenditures for health care after a spike in 2020 that occurred largely in response to the COVID-19 pandemic. Alongside this decline, the use of medical goods and services increased in 2021. The share of the economy accounted for by the health sector fell from 19.7 percent in 2020 to 18.3 percent in 2021, but it was still higher than the 17.6 percent share in 2019. In 2021 the number of uninsured people declined for the second consecutive year as Medicaid enrollment increased.

Automated summary

Health care spending in the US grew at a slower rate of 2.7 percent in 2021, reaching $4.3 trillion, compared to the 10.3 percent increase in 2020. The decrease in growth was primarily due to a 3.5 percent decline in federal government expenditures for health care, which was a response to the COVID-19 pandemic in 2020. However, there was an increase in the use of medical goods and services in 2021. The share of the economy accounted for by the health sector fell from 19.7 percent in 2020 to 18.3 percent in 2021, but it remained higher than the 17.6 percent share in 2019. Additionally, the number of uninsured people decreased for the second consecutive year in 2021 as Medicaid enrollment increased.