The prices paid for medical care in July rose just 1% from a year earlier, the slowest annual rate of growth since the early 1960s, according to Commerce Department data. Health-care increases now trail overall inflation, which itself has been historically slow in recent years.

The price data help explain why growth in overall health spending has slowed down in the past several years. The trend, if continued, has big implications for the government's finances because health-care costs are the biggest long-term driver of the federal deficit.

It also is the backdrop for the biggest change in the U.S. health-care system in decades, the rollout of new health-insurance exchanges on Oct. 1 as part of the Affordable Care Act. The overhaul, which was a top goal of President Barack Obama, is likely to be judged on whether it furthers the recent cost trend, as supporters predict, or undermines it, as critics expect.

http://online.wsj.com/article/SB10001424127887323342404579081312680485476.html



Edited 1 time(s). Last edit at 09/19/2013 09:18PM by liberal logic 27.

Unfortunately, the trend is not expected to continue. Costs are expected to increase significantly going forward. The majority of the slower pace currently is a function of temporary conditions including reductions in Medicare reimbursements, sequestration, several big drugs coming off patent, still slow spending growth generally due to the slow recovery, etc.



CMS: Health Spending Growth to Stay Slow in 2013

Helen Adamopoulos September 18, 2013


National healthcare spending growth will remain relatively slow at around 4 percent in 2013 but will accelerate starting next year, driven by the Patient Protection and Affordable Care Act, economic recovery and the aging population, according to a report by CMS analysts and economists published in Health Affairs.

In 2012, national healthcare expenditures reached an estimated $2.8 trillion and grew 3.9 percent, with the annual growth rate unchanged from 2011 because of the lingering effects of the recession, according to the report. Private health insurance spending growth held constant at 3.8 percent in 2011 and 2012 as a result of consumers' sensitivity to healthcare costs. Additionally, employers are increasingly offering health insurance benefits that involve higher cost sharing, such as high-deductible health plans.

Medicare spending growth fell to 4.6 percent in 2012 from 6.2 percent in 2011, in spite of enrollment growth. The report attributes this change to provider payment reductions under the PPACA and slower growth in the use of Medicare Part A hospital services. Furthermore, medical price inflation for total personal health care fell to 1.5 percent in 2012 from 2.1 percent in 2011, mostly because of a drop in prescription drug prices after the patents on several popular medications expired.

For the same reasons that slowed spending in 2012, private health insurance spending is projected to decrease further to 3.4 percent growth in 2013. Because of sequestration cuts, Medicare spending growth will also decrease to 4.2 percent.

However, the CMS economists expect overall growth in national health spending to speed up to 6.2 percent in 2014 as 11 million currently uninsured Americans gain coverage through Medicaid or the health insurance exchanges under the healthcare reform law. The growth rate is projected to stay near 6 percent in 2015 because of the continued effect of the PPACA as well as anticipated economic recovery.

From 2015 onward, continuing economic improvement and the aging baby boomer population's enrollment in Medicare will continue to drive spending growth, according to the report. From 2012 to 2022, national health spending is projected to grow at an average rate of 5.8 percent annually, 1 percent faster than the economy. Based on this estimate, CMS economists expect healthcare spending's share of the gross domestic product to increase from 17.9 percent in 2012 to approximately a fifth of the GDP in 2022.

Hospital spending growth in particular is expected to slow to 4.1 percent in 2013 from 4.9 percent in 2012, partly because of reduced Medicare spending under the healthcare reform law. CMS analysts then expect hospital spending to speed up to 4.7 percent in 2014. Due to improved economic conditions and increased Medicare enrollment as the population ages, hospital spending is expected to grow at an average annual rate of 6.3 percent from 2015 to 2022.

The economists' projections concerning Medicare focused on a hypothetical scenario where physician payment cuts under the program's sustainable growth rate don't go into effect, since Congress has temporarily bypassed the SGR so physicians would not have to endure double-digit cuts to their Medicare pay. "We emphasized the scenario in which Medicare physician payments, which are scheduled to be cut in 2014 under the sustainable growth rate, do not occur," CMS economist and lead author Gigi Cuckler said during a conference call.

The Congressional Budget Office also released a report this week that touches on healthcare spending projections. The CBO projected national healthcare spending will increase to approximately 22 percent of the gross domestic product by 2038 under current law. The CBO report assumes the SGR cuts will take effect.

liberal logic 27 Wrote:
-------------------------------------------------------

> The price data help explain why growth in overall
> health spending has slowed down in the past
> several years. The trend, if continued, has big
> implications for the government's finances because
> health-care costs are the biggest long-term driver
> of the federal deficit.


Glad to see you back wearing the dunce hat name.

Good thing youre now giving Obama credit for something thats been going on for the past several years

Liberal Logic 28 Wrote:
-------------------------------------------------------
> Good thing youre now giving Obama credit for
> something thats been going on for the past several
> years

Newsflash: Obama has been President "for the past several years".

Apology accepted.

I show 3% in the CPI medical care services. In the last year and half, a lot of blockbuster drugs went off-patent. It has nothing to do with Obamacare. My dad's annual prescription bill went from $1900 to $600.


http://healthcare.blogs.ihs.com/2011/10/28/drug-patents-expiration-2011-2012-a-bumpy-ride-ahead-for-big-pharma-as-big-drugs-lose-patent-protection/

liberal logic 27 Wrote:
-------------------------------------------------------
> >
> Newsflash: Obama has been President "for the past
> several years".
>
> Apology accepted.

So...all the bad shit that happens NOW gets blamed on Bush (out of office 5 years) but anything good is attributed to Obutthead......even if it was good back when Bush was POTUS?

So that's how it's gonna be huh?

Stabitha Wrote:
-------------------------------------------------------
> So...all the bad shit that happens NOW gets blamed
> on Bush (out of office 5 years) but anything good
> is attributed to Obutthead......even if it was
> good back when Bush was POTUS?
>
> So that's how it's gonna be huh?

Hey, in YOUR world everything negative that happens is Obama's fault & anything good that happens is despite Obama. Hypocritical much?

liberal logic 27 Wrote:
-------------------------------------------------------
> Liberal Logic 28 Wrote:
> --------------------------------------------------
> -----
> > Good thing youre now giving Obama credit for
> > something thats been going on for the past
> several
> > years
>
> Newsflash: Obama has been President "for the past
> several years".
>
> Apology accepted.

Sorry youve made it perfectly clear everything thats happened during that time is Bushs fault so we need to give Bush the credit as well. That is unless you arent a total moron and know nothing has happened during that time from a Presidential Policy standpoint that would have been responsible, nonetheless if a Presidents getting credit its definitely Bush since youve taught me that Obama is responsible for nothing.

liberal logic 27 Wrote:
-------------------------------------------------------
> The prices paid for medical care in July rose just
> 1% from a year earlier, the slowest annual rate of
> growth since the early 1960s, according to
> Commerce Department data. Health-care increases
> now trail overall inflation, which itself has been
> historically slow in recent years.
>
> The price data help explain why growth in overall
> health spending has slowed down in the past
> several years. The trend, if continued, has big
> implications for the government's finances because
> health-care costs are the biggest long-term driver
> of the federal deficit.
>
> It also is the backdrop for the biggest change in
> the U.S. health-care system in decades, the
> rollout of new health-insurance exchanges on Oct.
> 1 as part of the Affordable Care Act. The
> overhaul, which was a top goal of President Barack
> Obama, is likely to be judged on whether it
> furthers the recent cost trend, as supporters
> predict, or undermines it, as critics expect.
>
> http://online.wsj.com/article/SB100014241278873233
> 42404579081312680485476.html

Ohh ... more statistics from the Obama administration, which must mean they're totally true. Sort of like the unemployment numbers, too. Or, the numbers on jobs created where they are able to count a part-time job as a full number in that report. Sort of like "fuzzy math" if you ask me.

Liberal Logic 28 Wrote:
-------------------------------------------------------
> Sorry youve made it perfectly clear everything
> thats happened during that time is Bushs fault so
> we need to give Bush the credit as well. That is
> unless you arent a total moron and know nothing
> has happened during that time from a Presidential
> Policy standpoint that would have been
> responsible, nonetheless if a Presidents getting
> credit its definitely Bush since youve taught me
> that Obama is responsible for nothing.

You might want to reconsider your answer.


Attachments:

From Da Hood -- The Original Wrote:
-------------------------------------------------------
> Ohh ... more statistics from the Obama
> administration, which must mean they're totally
> true. Sort of like the unemployment numbers, too.
> Or, the numbers on jobs created where they are
> able to count a part-time job as a full number in
> that report. Sort of like "fuzzy math" if you ask
> me.

That's right: Any information that doesn't fit your ideological meme must be bogus. You'll be happier with your head stuck back in the sand.

liberal logic 27 Wrote:
-------------------------------------------------------
> From Da Hood -- The Original Wrote:
> --------------------------------------------------
> -----
> > Ohh ... more statistics from the Obama
> > administration, which must mean they're totally
> > true. Sort of like the unemployment numbers,
> too.
> > Or, the numbers on jobs created where they are
> > able to count a part-time job as a full number
> in
> > that report. Sort of like "fuzzy math" if you
> ask
> > me.
>
> That's right: Any information that doesn't fit
> your ideological meme must be bogus. You'll be
> happier with your head stuck back in the sand.

The numbers are fine as presented in the article. The problem is in your interpretation and attempt to present them out of context without any real understanding. The reality, as reflected in the bigger-picture article which follows, is that any slowing is a blip due to some specific current circumstances. The more significant trend is for substantial increases and directly counter the positive way you hoped it would be perceived. But that's what happens when you cut and paste stuff that you don't really understand in an attempt to use it for dumb talking point purposes.

liberal logic 27 Wrote:
-------------------------------------------------------

> Hey, in YOUR world everything negative that
> happens is Obama's fault & anything good that
> happens is despite Obama. Hypocritical much?


You just summed up the repub party in 1 sentence.