Home Health & Hospice Week

Industry Note:

CMS Issues Spending Projections

Spending on home care is projected to rise a whopping 83 percent from 2018 to 2027, climbing to $186.8 billion annually, says a new report from the Centers for Medicare & Medicaid Services Office of the Actuary. Medicare home health spending specifically will see an even more dramatic rise of 98 percent in the time period, to $81.2 billion in 2027, according to the newly released budget forecast.

Annual rates of increase will vary from 4.9 percent to 7.1 percent over the 10-year period, CMS predicts. The average rate of growth for all types of health care spending is 5.5 percent per year, the new projections say.

The baby boomer generation aging into Medicare is one of the key factors driving the increase, CMS says in a release. See more about the spending projections at www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NationalHealthAccountsProjected.html.

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