Hospital expenses are the largest category of Medicare spending, but their share has fallen over time
April 01, 2012
SOURCE: Centers for Medicare and Medicaid Services, National Health Expenditure data. Compiled by PGPF.
Hospital expenses are the largest single component of program spending, accounting for about 43 percent of the total. But the share of hospital spending has declined as spending on prescription drugs, home health care, nursing homes and equipment has risen. Most notably, the addition of prescription drug benefits to the Medicare program significantly altered the composition of spending.
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