Health Care

US Consumer Healthcare Spending Up Says Report

US Consumer Healthcare Spending Up Says Report”

Almost all of the spending growth can be attributed to price increases, not to increases in utilization, said Niall Brennan, president of Health Care Cost Institute. In 2015, spending grew 4.1% over the prior year.

The report, built on claims data from 39 million people who receive insurance through their employers, found especially sharp increases in the prices of emergency room visits, surgeries and drugs administered in doctors' offices.

Prescription drugs showed the highest cumulative spending growth of any category, driven by three therapeutic areas, including anti-inflammatory and hormonal agents.

The institute's annual Health Care Cost and Utilization Report, released Tuesday, examines health care use and spending from 2012 to 2016 among people up to age 65 with employer-sponsored health insurance. Spending on drugs did moderate a bit from the 10.4% growth seen in 2015.

While healthcare spending depends on price and service use, substantial hikes in healthcare spending between 2012 and 2016 were mainly due to price increases, according to a recent Health Care Cost Institute report.

Consumer out-of-pocket spending per person increased, but grew more slowly than total spending. However, spending on office visits to specialists rose 31 percent, and spending on preventive care visits rose 23 percent. "More recent data provides key insights into the spending and costs of prescription medicines", PhRMA said in an email to HealthLeaders Media. But as deductibles increase, Americans have a harder time paying for healthcare and start to put off both unnecessary and necessary care.

Utilization, however, trended down between 2012 and 2016.

The price of inpatient and outpatient surgeries also increased.

The fact that the price of healthcare can rise while demand drops is a peculiarity of the industry, Brennan said. The study also found large price increases for administered drugs (up 42% to $581 on average) and outpatient ER visits (up 31% to $1,917 on average) over the five-year period.

The average price for surgical admissions increased by 30 percent between that five-year period, but there was a 16 percent drop in utilization. Prices did decline in some cases, but by small amounts.

The major factor driving this increase in spending is increasing prices, according to the report. It's hard to pin down just what's driving the increase in prices, which can vary by thousands of dollars between hospitals within the same neighborhood for the same service. The claims data, representing about a quarter of all people covered by employer-based insurance, came from insurance companies including Aetna, Humana, Kaiser Permanente and UnitedHealthcare.

Since health care premiums are paid by workers and their employers, the increased costs hit people indirectly even when they are not paying out-of-pocket. "These discounts rebate more than one-third of the list price back to payers and others in the supply chain".

Like this



24 January 2018
Top QB prospects Josh Allen, Sam Darnold training together in Orange County
Allen, a senior, is at this weeklong event; neither Rosen nor Darnold is a senior and are not in attendance. I was able to spend some time with him at the Manning Passing Academy, and he's a great guy.

24 January 2018
Duckworth to become first senator to give birth in office
She has since worked with fertility specialists at Northwestern University's Feinberg School of Medicine to try again. It is unclear how much time Duckworth will take for her own maternity leave after the birth of her second child.

24 January 2018
Legal action threatened over rapist Worboys' parole report
Gauke has informed victims that Worboys would not be released until they have made representations about his licence conditions. Over the weekend, he was reportedly transferred from HMP Wakefield in West Yorkshire to HMP Belmarsh in southeast London .

24 January 2018
Flash freeze sends Sutton school bus careening down hill
Authorities say one child was taken to a Dubuque hospital after a school bus crashed off an icy road in eastern Iowa. Twenty-nine middle and high school students were on the bus at the time of the crash, according to officials.

24 January 2018
Keys has no answer to Kerber strike-power
World number one Simona Halep produced a superb performance to beat Karolina Pliskova and reach the Australian Open semi-finals. She made just seven unforced errors for the match and denied the big-serving 22-year-old a single ace.

24 January 2018
Meehan Still Running for Re-election Amid Sexual Harassment Probe
The New York Times reported over the weekend that Meehan settled a sexual misconduct complaint with the former aide. They also noted that Meehan himself had written to the committee to ask that it review the allegations.

24 January 2018
(NYSE:UNP) Holdings Trimmed by Van Strum & Towne Inc
Investors tracking shares of Union Pacific Corp (UNP) may have taken notice that the stock has risen 6.55% over the last 4 weeks. Bank Of The West decreased Schwab Strategic Tr (SCHF) stake by 10,824 shares to 378,357 valued at $12.66 million in 2017Q3.

24 January 2018
Macaulay Culkin: My father was abusive
At the time, Jackson shared a photo to Instagram a photo of their arms side-by-side, revealing spoons on both of their forearms. He said he hasn't talked to his father in 25 years; Kit Culkin reportedly lives in Oregon.

24 January 2018
Martin O'Neill, Roy Keane extend Rep of Ireland contracts until 2020
He will now lead Ireland in the newly formed Nations League and qualifying for Euro 2020. Ireland's next fixture is a friendly in Turkey in March.

24 January 2018
Phil Neville named the new head coach of the 'Lionesses'
However, shortly after he was named as the new head coach, a historical tweet posted by Neville in 2012 caused a Twitter storm. Under Sampson, England reached the Women's World Cup semifinals in 2015, bringing the women's game to national attention.