CMS: Health Spending Down in 2008

[This article posted on January 6, 2010. It is posted within the following categories: CMS, Corporate, Healthcare Policy & The Media, via Michael Douglas, MD, MBA.]

Healthcare spending in the United States rose just 4.4 percent in 2008. That’s the lowest rate on record, according to CMS. The recession was cited as the major factor; however, spending’s share of the GDP rose to 16.2 percent in last year. A big chunk of the spending comes from acute hospital healthcare delivery.

Of course, the decline in insurance as a mode of delivery was met by increases in outlays to Medicare (greater spending on care to the elderly and disabled) and Medicaid (shifts of government funds to cash-strapped states to finance their care initiatives). Many are correct in tempering enthusiasm for such belt-tightening as government spending with respect to healthcare expenditures rose last year.

If there were any reason Republicans wanted the reform bill’s negotiating and reconciliation sessions transparent, it certainly is that last one. | LINK

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