Federal Covid Cash Propels 10% Jump in U.S. Health-Care Spending

Health-care spending in the U.S. spiked 9.7% to $4.1 trillion—or $12,530 per person—in 2020, driven by a torrent of cash from new federal Covid-19 programs, the Department of Health and Human Services said Wednesday.

The growth rate—more than double the 4.3% increase in 2019—was caused by the 36% boost in federal expenditures for health care in response to the Covid-19 pandemic, the Centers for Medicare & Medicaid Services said in an analysis. The annual report from the Office of the Actuary was published by the journal Health Affairs.

“In particular, there were new federal programs—the Provider Relief Fund, and ...