Health care spending trends-watch your wallet‼️

I guess you can look at the following as good news or not so good news (or more likely it’s a good guess for now). A slower growth rate is not bad of course, but health care spending growing at more than twice general inflation is not great.

Clearly your costs are not going down by an average of $2500 as the rhetoric once claimed and from a personal point of view you should pay close attention to the few words I underlined below; for employer-based coverage especially that’s what is going to get you in the wallet.

National Health Expenditure Projections, 2013–23: Faster Growth Expected With Expanded Coverage And Improving Economy
Andrea M. Sisko1,*, Sean P. Keehan2, Gigi A. Cuckler3, Andrew J. Madison4, Sheila D. Smith5, Christian J. Wolfe6, Devin A. Stone7, Joseph M. Lizonitz8 and John A. Poisal

Abstract

In 2013 health spending growth is expected to have remained slow, at 3.6 percent, as a result of the sluggish economic recovery, the effects of sequestration, and continued increases in private health insurance cost-sharing requirements. The combined effects of the Affordable Care Act’s coverage expansions, faster economic growth, and population aging are expected to fuel health spending growth this year and thereafter (5.6 percent in 2014 and 6.0 percent per year for 2015–23). However, the average rate of increase through 2023 is projected to be slower than the 7.2 percent average growth experienced during 1990–2008. Because health spending is projected to grow 1.1 percentage points faster than the average economic growth during 2013–23, the health share of the gross domestic product is expected to rise from 17.2 percent in 2012 to 19.3 percent in 2023.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s