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According to Home Care Magazine: Medicare Spending remains flat in home medical equipment

Wednesday, February 29, 2012 @ 08:02 AM  posted by jbuytaert

Jan 13, 2012 – 4:17 pm

HME spending hit $7.5 billion in 2010, which represents no growth compared to the previous year, according to an analysis of CMS data by the American Association for Homecare.

Additionally, total Medicare spending was $524.6 billion in 2010, according to National Health Expenditure data from the Centers for Medicare & Medicaid Services. That means durable medical equipment spending constitutes 1.4 percent of total Medicare spending. In 2010, total Medicare spending increased by 5 percent.

“This data underscores a reality that all policymakers should be aware of: HME spending is not the problem in Medicare’” AAHomecare said in a release. “Spending growth for HME was flat in the face of increasing demand for home medical equipment and services.”

AAHomecare produced a chart that shows how spending on durable medical equipment compares to total Medicare spending and other healthcare sectors.

The CMS report found that total healthcare spending of all types in the U.S. grew by 3.0 percent in 2010, to $2.6 trillion. This breaks down to $8,402 per person and 17.9 percent of the nation’s gross domestic product. Enrollment in Medicare increased by about 2 percent between 2009 and 2010, rising from 46.1 million to 47 million, according earlier data from CMS.

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