The total amount of money Americans will spend on health care at continuing care retirement communities (CCRCs) and skilled nursing facilities is projected to increase at a steady pace over the next decade, according to a new report from the Office of the Actuary at the Centers for Medicare & Medicaid Services (CMS).
In 2013, Americans spent approximately $149 billion at continuing care retirement communities (CCRCs) and nursing care facilities. By 2017, that number had risen to $168.1 billion. In 2020, it’s expected to hit $191.9 billion, and in 2026, it’s anticipated to hit $261 billion.
On the whole, the way Americans will pay for their health care in years to come is expected to shift by 2026, as well.
Medicare spending, for instance, is expected to grow more quickly than private health insurance spending post-2017, as the baby boomer generation will likely continue to opt out of private plans and into Medicare. Plus, insurers and employers will likely continue their efforts to manage health care cost increases, the report indicates.
Additionally, by 2026, the anticipated higher share of aged and disabled enrollees will contribute to faster growth in Medicaid spending.
National health spending, meanwhile, is projected to increase 5.5% per year, on average, from 2017 to 2026, due primarily to the aging of the U.S. population, heightened prices of medical goods and services, and changes in projected income growth.
In 2026, national health spending is expected to represent 19.7% of the economy.
Written by Mary Kate Nelson