Medicare Spending on HME Flat-Lined in 2010

Compared to the prior year, 2010 data shows that spending was 7.5 billion.  This is according to AAHomecare studies of information gathered from CMS. This is based on National Health Expenditures.

Medicare spending went up by 5 percent in 2010.  Home Medical Equipment expenses accounted for 1.4 percent of total spending. The actual total Medicare spending was 524.6 billion.

Analysis of this data confirms that HME spending is far from the biggest problem with general, Medicare costs. With spending growth hardly affecting the overall expenses, demand continues to rise for home medical equipment and services.  Hopefully our policymakers will understand the importance of this data.

This research is confirmed when one studies data for multiple sectors, including HME, from 1997 to 2010.  Trends are easy to identify if you were to compare total Medicare spending to durable medical equipment during those same time periods.

On an overall level, spending increased to 2.6 trillion. This is an increase of 3.0 percent.  The CMS report confirms that HME spending was not the problem with Medicare in 2010.  With actual costs of 8,402 per person, the 117 dollars spent per person for HME reflects 17.9 percent of GDP.