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How Did the COVID-19 Pandemic Affect 

Healthcare Spending?

Grace Hill

Economist

Consumer Expenditure Surveys

Office of Prices and Living Conditions
2 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Introduction

So, in an environment with:

Health-related uncertainty

Lockdowns and social distancing

Followed by:

Vaccines

Easing of restrictions 

Healthcare expenditures reveal the cost to consumers of 

improving their health.
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Introduction

Did consumers change how they allocate their healthcare 

spending in response to pandemic challenges? 

Yes!
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CE Healthcare Expenditures

◼ Healthcare expenditures is 

an aggregate of 4 

components:

◼ Health insurance

◼ Medical services

◼ Drugs

◼ Medical supplies
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Healthcare spending

Table 1. Consumer Expenditure Surveys, 2019–21

Item Annual 2019 Annual 2020 Annual 2021

Percent changes

2019–20 2020–21 2019–21

Average annual 

expenditures $63,036 $61,332 $66,928 -2.7 9.1 6.2

Average annual 

expenditures less 

healthcare

57,843 56,155 61,476 -2.9 9.5 6.3

Healthcare 5,193 5,177 5,452 -0.3 5.3 5.0

Health insurance 3,529 3,667 3,704 3.9 1.0 5.0

Medical services 984 864 1,070 -12.2 23.8 8.7

Drugs 486 476 498 -2.1 4.6 2.5

Medical supplies 194 170 181 -12.4 6.5 -6.7

Source: U.S. Bureau of Labor Statistics.
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COVID-19 and Medical services in 2020

◼ Government ordered 

lockdowns and social 

distancing

 In person doctor visits posed a risk 

of infection so many consumers 

went without those services in 

2020
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COVID-19 and Medical services in 2020

◼ Demographic spending patterns:

Income

– The lowest and highest income quintiles had the highest percent decreases in 

medical services spending, about 27 percent and 19 percent respectively

Family Composition

– Single parents decreased their medical services spending by about 24 percent 

– Married parents increased their medical services spending by about 4 percent
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Medical services in 2021

◼ Vaccines

Various groups become eligible 

for a vaccine against COVID-19, 

allowing for a sense of safety 

and easing of lockdown 

restrictions
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Medical services in 2021

◼ Demographic spending patterns:

Age

– Consumer units with reference persons aged 35-44 increased medical services 

spending by about 62 percent

Family Composition

– All family types increased their medical services spending except married 

couples with children under 6

– Presumably, this is due to delayed vaccine approval for children under age 5
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How did the COVID-19 pandemic affect 

healthcare spending?

◼ Read the full article here:

https://www.bls.gov/opub/btn/volume-12/how-did-the-covid-19-

pandemic-affect-healthcare-spending.htm
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Contact Information

Grace Hill

Economist

Consumer Expenditure Surveys

www.bls.gov/cex

202-691-6900

hill.grace@bls.gov