5 expenses, supply chain volatility, and growing levels of bad debt. Payers face parallel challenges: tightening margins as medical loss ratios climb, driven by rising utilization and higher acuity in postpandemic populations. At the same time, stricter CMS oversight of Medicare Advantage, along with new transparency and prior-authorization rules, are adding compliance costs. Between 2021 and 2023, overall inflation (12.4%) rose more than twice as fast as inpatient Medicare reimbursement rates (5.2%) INFLATION 200% Over the next 10 years, health expenditures are expected to continue to grow faster than the rest of the economy increasing from 17.6% of the GDP in 2023 to 20.3% of the GDP by 2033
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