MedPAC details health care spending
By HME News Staff
Updated 8:49 AM CDT, Mon July 21, 2025
WASHINGTON – The Medicare Payment Advisory Commission (MedPAC) has released its 2025 data book on health care spending and the Medicare program.
The data book includes Medicare’s share of national spending on personal health care varied by type of service for 2023, including durable medical equipment (DME). Medicare’s share of spending on DME was 21%, while Medicaid and CHIP were 30% and other was 64%. Other includes private health insurance, out-of-pocket spending, and other private and public spending.
The 216-page report also dives into:
- Medicare beneficiary demographics
- Medicare beneficiary and other payer financial liability
- Dually eligible beneficiaries
- Alternative payment models
- Acute inpatient services, including general acute care hospitals
- Ambulatory care
- Post-acute care (skilled-nursing facilities, home health services, inpatient rehab facilities and long-term care hospitals)
- Medicare Advantage
- Prescription drugs
- Other services (dialysis, hospice and clinical laboratory)
For Medicare Advantage, MedPAC says enrollment in these plans increased to 34.4 million beneficiaries in 2025, representing 55% of the Medicare population. Medicare payments to these plans were $494 billion in 2024.
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