Health Affairs September 18, 2024
From 2021 to 2022, Medicare spending increased by 5.9 percent, from $689 billion in 2021 to $944 billion in 2022, reaching 21 percent of total National Health Expenditures. Increased Medicare spending has raised concerns about the financial sustainability of the Medicare program. As health care spending has increased over the last decade, bipartisan momentum to address health care costs has emerged.
Site-neutral payments in Medicare have emerged as a potential policy option to reduce Medicare spending without impacting beneficiaries’ access and quality of care. This option has gained support from many across the health care industry, including former HHS secretaries Alex Azar and Kathleen Sebelius, who co-authored a joint op-ed in STAT to support the adoption of site-neutral payments for...
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