Healthcare Cost Growth Steamrolls CPI
The average per capita cost of healthcare services grew at more than three times the rate of overall inflation for the 12-month period that ended in June, with the cost of services covered by commercial health plans growing four times faster than those of Medicare, new data shows.
Standard & Poor's Healthcare Economic Indices show that per capita cost growth covered by commercial insurance and Medicare programs increased by 5.78% over the 12-months ending June. In the larger economy inflation rose by 1.7% as measured by the Consumer Price Index for the same period, federal data show.
A further breakdown shows that healthcare costs covered by commercial insurance plans increased by 8.09% over the year ending in June, down from the +8.4% annual increase reported for May. Medicare claim costs growth slowed to +2.27% when compared to May’s +2.5% growth.
"The remarkable thing we are seeing, no matter whether the prices have gone up or down over the years, has been how much has been shifted in terms of the annual rates of change into commercial usage as opposed to Medicare," Maureen Maitland, vice president of S&P’s Dow Jones Indices, told HealthLeaders Media.
- Antibiotic Overuse a 'Huge Threat' to Patient Safety, Says CDC
- CFO Exchange: Smartphones Poised to Disrupt Healthcare, Says Topol
- Consumerism Drives Healthcare Branding, Rebranding Efforts
- 3 Traits Personality Assessments Can't Reveal
- PA Ranks See 'Phenomenal Growth,' Lack of Diversity
- CHS Hacked, 4.5M Patient Records Compromised
- Business Roundup: M&A Activity Down Slightly in First Half of 2014
- CFO Exchange: Healthcare Leaders Share 5 Innovative Ideas
- CNO on Hospital Redesign: 'You Can't Over-Communicate'
- Large Employers Trimming Healthcare Spending