Rise in health care spending lowest on record

Posted: December 4, 2013 in Uncategorized

Since the passage of the Affordable Care Act in 2010, healthcare costs have risen by just 1.3%. That is the lowest rate ever recorded since the beginning of tracking healthcare spending. The last three years have also seen the lowest healthcare inflation, 1%, in 50 years. The recession put into focus the importance of reducing healthcare costs and spending growth.

Although the new act has been helpful for structural change, it has also been riddled with problems during its start up period. Cost reductions are leading to the restructuring of the Medicare and Medicaid budget predictions for 2020. Congress believes costs will continue to decrease so spending projections are down by $147 billion.

Some reports coming from the CMS are reporting higher numbers than ones coming from the White House. But, numbers have still declined in recent years. This is also in part because the government has started more cost-sharing and many insurance deductibles have increased.

Jason Furman, the chairman of the Council of Economic Advisers, said “Private insurance spending grew at an annual rate of 1.6% in the last three years, while Medicare spending had 0.0% growth rate and Medicaid spending was actually minus 0.5%.”

Read more about declining healthcare spending at this link:

http://www.usatoday.com/story/news/nation-now/2013/11/20/health-care-spending-growth/3650243/

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