Which hospitals need the most medical care?

Health care costs are expected to soar as more and more people become eligible for Medicare and Medicaid, and a growing number of states are trying to deal with the costs.

A new report from the Institute for Health Metrics and Evaluation (IHME) finds that Medicare, Medicaid and private insurance companies are all spending more on medical care than they do on other types of health care.

Medicare pays for nearly 60 percent of all health care in the U.S. but spends less than 2 percent of its overall revenue on health care services.

In 2018, Medicare paid out $1.3 trillion in benefits, according to the report.

Private insurance companies spent $3.2 trillion on medical services in 2018, but spent just $2.2 billion on the same types of services. 

The report also found that health care spending has been on the rise for many years, with health care costs rising more than 50 percent since 2000.

Medicare, for example, spent $11,000 on medical procedures and $5,000 more on prescription drugs in 2017.

In 2019, Medicare spent $2,800 on the drugs, and in 2020, it was $3,600.

Private insurers spent $9,400 on health costs in 2018 and $9.00 in 2019.

And private health insurance companies also spent $6,600 on medical expenses in 2019, but spending $7,800 in 2020.

The report found that while the share of health spending by Medicare is up, private insurance spending has fallen dramatically.

Medicare’s spending on medical costs fell nearly 18 percent between 2015 and 2020, while private insurance was up about 10 percent.

And while Medicare spent nearly $1 trillion on its own medical care in 2017, it spent just under $700 billion on medical assistance programs, according a new report by the nonpartisan Kaiser Family Foundation. 

“The health care market is rapidly maturing and will likely continue to grow,” said IHME Chief Medical Officer Dr. Michael McDonough.

“As the Affordable Care Act has allowed many Americans to shop for coverage through private insurers, it is imperative that all Americans have access to high-quality health care, regardless of their income.”

 The study, “The Medical Costs of America’s Healthcare System: A National Perspective on Health Care Spending,” was released this week and was conducted by researchers from the Kaiser Family Foundations and the Kaiser Health Tracking Poll.

 Follow APMEDIA reporter Lauren Fennell at twitter.com/laurenfennell.

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