Health Care Spending To Increase by 4.5% in 2014 September 11, 2013 News Behind the Numbers, health care spending, PricewaterhouseCoopers' Health Research Institute 0 Health care spending is projected to increase by 4.5% in 2014, fueled primarily by changes in the industry intended to bring down costs, according to a new report from PricewaterhouseCoopers' Health Research Institute. In the annual "Behind the Numbers" report, analysts specifically predicted a medical cost trend of 6.5% next year. However, changes in health insurance requirements will effectively lower that figure by 2 percentage points, they noted. HRI Managing Director Ceci Connolly attributed some of the slowdown to lingering effects from the 2007 economic recession that are continuing to influence consumer behavior, such as delaying or avoiding medical consultation or elective procedures. In addition, the HRI report outlined several structural changes that are slowing costs, including: The growing number of retail clinics that were used by 24% of consumers in 2012—compared with only 10% in 2007—and can deliver care at two-thirds the cost of a doctor's visit; The growth of employers' use of high-performance networks—in which employers contract with marquee health systems to offer high-quality care at savings of 10% to 25%; A rapid adoption of high-deductible health plans; and Federal readmission penalties. Source: California Healthline, September 11, 2013. Comments are closed.
