Monday, October 24, 2011

US Healthcare rate climbed in 2011 but at a slower pace

The average cost of healthcare services covered by commercial services and Medicare grew 5.73% from August 2010 to August 2011.  This is the lowest growth rate in six years, however still outpaced the overall inflation rate of 3.1% according to the CPI Index.  According to Health Leaders Media, the cost of hospital and professional services rose, but it is believed to be a result of  rising employment and wages.

David M. Blitzer, chairman of the Index Committee at S&P Indices, said in the report, stated:
"As the summer of 2011 ended, we continued to observe the recent trend of a deceleration in the annual growth rates of Medicare costs and a sustained acceleration in the annual rates of commercial healthcare costs.....With this month's data, the Medicare index is almost one-fourth of its peak annual rate of +8.02% recorded in November 2009. This is a very sharp deceleration."

At the 9th Annual The Medicare Congress, Centers for Medicare & Medicaid Services will be on hand to present, "Strengthening Medicare – Better Health and Lower Costs for Medicare Beneficiaries," identifying the problems posed by the increasing cost of Medicare.  For more information about the event, download the brochure here.

Why do you think the average cost of healthcare had a lower rate of growth in 2011?

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