business
Medical inflation higher than other economic sectors
■ Another survey finds patients less confident in their ability to cover health care costs.
By Victoria Stagg Elliott — Posted Dec. 28, 2010
The cost of medical services and commodities continues to grow, and this may be a factor contributing to a recent decline in a measurement of patient confidence in their ability to pay for health care.
Overall inflation for the past year was 1.1%, with the "core" rate at 0.8% taking out the more volatile food and energy sectors, according to the Consumer Price Index released Dec. 15 by the U.S. Bureau of Labor Statistics. The Federal Reserve target for annual core inflation is 1.6% to 2%.
The medical care index grew by 3.2%, with the price paid for related commodities going up by 2.7%. During the past 12 months, the cost of professional services, which includes physicians, went up by 2.8%. The expense of hospital and related services increased by 6.6%.
Medical inflation for November was more in line with the economy as a whole. Inflation in the U.S. economy for the month was 0.1%, less food and energy costs -- the first gain since July. The medical care index grew by 0.1%, but the cost of related commodities increased in price by 0.2%. The price of professional services went up by 0.3%, and the cost of hospital care declined by 0.2%.
The CPI report does not explain why the rates of inflation change (link).
Meanwhile, a measurement of consumer confidence in paying for health care finds that people are less sure they are able to pay their bills.
The Consumer Healthcare Sentiment Index for November released Dec. 14 by Thomson Reuters was 96. One hundred is the baseline. November represented the second straight month of decline. This number was 100 in September and 97 in October.
This measure is created from responses to surveys completed by a representative sample of 3,000 households.
