KFF: Medicare nursing home spending increased over 4% in 2020

Medicare spending on skilled nursing facilities increased 4.4 percent from 2019 to 2020, despite 200,000 fewer beneficiaries using services than usual, a new analysis from Kaiser Family Foundation found.

The June 1 analysis used CMS Geographic Variation Public Use File data, which includes spending and utilization for traditional Medicare beneficiaries enrolled in both Part A and Part B, and have no months of Medicare Advantage enrollment. 

Key findings: 

  • Average spending per nursing facility user was 16.3 percent higher in 2020 than in 2019. 

  • Increases in average spending per day and average length of stay contributed to the higher average spending.
     
  • Medicare beneficiaries under the age of 65 accounted for a "disproportionately large" share of the spending increase.

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