Medicare Cuts Stalled Growth of CCRC, Senior Care Spending to $151 Billion

Healthcare spending for freestanding skilled nursing facilities and continuing care retirement communities increased slightly to $151 billion in 2012, representing a deceleration in spending growth from the previous year, according to the Centers for Medicare & Medicaid Services (CMS). 

In 2012, spending in these two senior care sectors increased 1.6%, compared to a 4.3% growth in 2011, according to the National Health Expenditures report. 

“The slower growth in 2012 was primarily due to a reduction in Medicare spending due to a one-time rate adjustment for skilled nursing facilities,” says CMS in the report. 


Overall, healthcare spending in the U.S. increased 3.7% in 2012 to $2.8 trillion. In the home health category, spending growth accelerated 5.1% to $77.8 billion, compared to 4.1% growth in 2011. 

“Medicare and Medicaid spending accounted for approximately 81 percent of total home health care spending in 2012,” CMS said, adding that Medicare spending for home health grew at a faster rate, while Medicaid spending slowed. 

View highlights of the National Health Expenditures report for 2012. 


 Written by Alyssa Gerace