business
Inflation in health care sector slows slightly
NEWS IN BRIEF — Posted May 16, 2011
The amount of money paid for health care grew faster than inflation for the economy as a whole, but more slowly than in the past, according to data released May 3.
The Thomson Reuters Healthcare Spending Index for Private Insurance, which tracks the medical expenses of people covered by self-funded employer-sponsored health plans, increased 5.8% in 2010. The expenses went up 6.6% in 2009.
The amount of money paid for hospital care grew the fastest, at 7.9%. Costs related to care by physicians increased by 4.9%, and drug costs escalated by 1%.
Analysis suggested that diagnoses associated with behavioral risk factors such as obesity, inactivity and tobacco use accounted for 24% of annual spending. Researchers suggest targeting the issues may help employers reduce medical expenditures.
"Costs continue to increase, but the slower rate of health care inflation is notable in a year when overall inflation grew at a rate of 2.7%," said Gary Pickens, PhD, chief research officer at the Thomson Reuters Center for Healthcare Analytics. "As we investigate the individual drivers of health care cost increases, it becomes clear that there's an opportunity for employers to intervene with programs designed to address unhealthy behaviors."
More information about the index is available online (link).
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/05/16/bibf0516.htm.
