Seven things to know:
1. Total spending for traditional Medicare beneficiaries was $348 billion in 2020, down from $369.5 billion in 2019.
2. The drop in spending followed the sharp decline in the use of healthcare services during the first months of the COVID-19 pandemic.
3. Total Medicare spending increased in 2020 because federal payments per Medicare Advantage rose 6.9 percent. Medicare Advantage payments were determined in mid-2019 and did not reflect lower utilization rates that occured in 2020.
4. Traditional Medicare spending per person was $10,739 in 2020, down from $11,142 in 2019.
5. Only three types of traditional Medicare services were used more in 2020 than 2019: hospice, dialysis, and Part B drugs.
6. Traditional Medicare spending decreased for most services, ranging from 0.1 percent less for durable medical equipment to 13.1 percent less for procedures, compared to 2019.
7. Spending increased in 2020 for Part B drugs (5.2 percent); skilled nursing facilities (4.4 percent); and hospice (2.9 percent).
