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How Did COVID-19 Affect Medicare Spending?


June 1, 2021

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Despite its otherwise devastating effects, the COVID-19 pandemic did not have a major financial impact on Medicare in 2020, according to research published in the Annals of Internal Medicine.


In an accompanying editorial, the Commonwealth Fund’s David Blumenthal, M.D., and Gretchen Jacobson note that the new study puts COVID-19’s financial burden into perspective, while also shedding light on how the pandemic has affected medical care for people in vulnerable groups. Per capita Medicare expenditures for COVID-19 in 2020 were lower than they were for many conditions common among older adults, like heart disease, diabetes, and cancer. The study also confirms the pandemic’s disproportionate toll on people of color.


The study, Blumenthal and Jacobson say, is “a useful addition to what is likely to be a growing literature of the effects of COVID-19 not only on the nation’s health but also on its economy, social and governing structures, and enduring racial inequities.”

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