Health care spending growth almost entirely due to price increases.

KEY TAKEAWAY: Total spending per person is now growing at faster rates than prior years, with 4.6% growth in 2016 compared to. 4.1% growth in 2015, which followed 2 years of sub-3% growth from 2012 to 2014. Spending growth in each year from 2012 to 2016 was almost entirely due to price increases. We saw particularly large increases in spending and price for administered drugs, emergency room (ER) visits, and surgical hospital admissions.  (Source: The Health Care Cost Institute’s (HCCI) 2016 annual report on U.S. health care cost and utilization?

Continue reading