In recent years, healthcare spending had slightly slowed down because of the recession, which caused consumers to become more cost conscious and to spend less on their medical needs. The Obama administration had attributed this healthcare spending reduction to the Affordable Care Act (ACA), otherwise colloquially known as Obamacare, but health experts questioned this.
A new report released Tuesday by PricewaterhouseCoopers’ Health Research Institute discovered that healthcare costs are now expected to increase by 6.8 percent in 2015, up from the projected 6.5 percent boost this year. The study authors say this is the first jump in healthcare costs in quite a few years since the economic downturn.
The rising costs of specialty drugs, information technology investments, physicians switching to hospitals from private clinics and the economic recovery – perhaps even the Federal Reserve’s printing press – are attributed factors to the matter of growing healthcare costs. Specialty drug spending accounts for a significant percentage of healthcare spending as it doubles every four years: in 2012, Americans spent $87 billion and that number will spike to $192 billion by 2016.
Although this is seen as a negative statistic, politicos and health analysts say that it’s still a better figure than the double-digit healthcare inflation numbers usually seen each year prior to the financial crisis, notes the Washington Pos. However, Ceci Connolly, managing director of the institute, says there are a few factors that are pushing down the growth of healthcare spending: healthcare efficiencies, expansion of payment models for physicians and the boost in high-deductible plans.
In addition, Connolly told the New York Times that the 6.8 percent is still a noteworthy figure to report on considering how there has been a paucity of healthcare spending over the past five years.
The report was compiled using data from interviews with public policy experts, industry executives and health plan actuaries for companies. Employers have also noted how they are modifying their behavior by increasing how much their workers pay for their medical care.
Researchers did not project healthcare costs beyond the year 2015 because anything following will likely depend on how the system reacts to the growing demand of medical care. Considering that there is a doctor shortage and an immense influx of hospital patients, experts say the costs will skyrocket.
Despite the reforms made by bureaucrats, reports have highlighted how the United States healthcare system will possibly metastasize. One report found that the U.S. will need approximately 50,000 primary care physicians within the next 10 years, while there have been other media reports showcasing longer doctor wait times.
“Finding a physician who can see you today, or three weeks from today, can be a challenge, even in urban areas where there is a high ratio of physicians per population,” said Mark Smith, president of Merritt Hawkins, in an interview with Forbes. “The demand for doctors is simply outstripping the supply.”
For those that fear this trend, the Health Care Cost Institute will provide free online tools related to cost, quality of medical care for consumers and general information. This is scheduled to rolled out soon and it has been working with large private insurance companies to gather the data.
