Employee Benefit News for School, City and County Employers

Americans Spent $4.5 Trillion in Health Care in 2022

Written by Erin Woulfe | Jan 12, 2024 3:41:07 PM

1 minute read

Health care spending in the United States reached $4.5 trillion in 2022, a 4.1% increase from the previous year. This averages out to $13,493 per person. The growth in health care spending in 2022 was higher than in 2021 but lower than in 2020. Medicaid and private health insurance were the driving factors behind the spending, although there were some declines in COVID-19-related funding. Private health insurance spending increased by 5.9% to $1.3 trillion in 2022, slightly lower than the increase in 2021. The insured population reached a historic high of 92% in 2022.

Health care spending increased in the following areas:

  • Hospital care - 2.2%
  • Home health care - 6%
  • Retail prescription drugs - 8.4%
  • Dental services - 0.3%
  • Nursing care facilities and continuing care retirement communities - 5.6%
  • Physical and clinical services - 2.7%
  • Durable medical equipment - 5.1%
  • Other nondurable medical products - 8.5%

Rising health care costs will continue to present challenges for both employers and employees. Employer should try to take proactive steps to address these concerns by providing actionable solutions and showing care for their workers' well-being. Doing so can help boost morale, drive productivity, and enhance attraction and retention rates. Download the bulletin for more details.