Health Payer Intelligence January 17, 2022
Victoria Bailey

Federal dollars that went toward pandemic-related actions and initiatives were the driving force behind the increase in national healthcare spending in 2020.

National healthcare spending increased by nearly 10 percent in 2020 to $4.1 trillion, largely due to the spike in federal spending in response to the COVID-19 pandemic, according to a Health Affairs report.

When the pandemic hit in March 2020, it jumpstarted a series of changes in the healthcare industry. Health systems and clinics shut down, Americans delayed receiving healthcare services, health insurance coverage shifted due to unemployment, and the federal government increased its spending to support COVID-19-related actions.

The country’s national healthcare spending increased by 9.7 percent, which is the fastest rate since 2002. Meanwhile, gross domestic...

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