Health care costs are rising faster than overall inflation.
Health care costs are expected to grow 6.5% through next year. While costs have finally reached a point of equilibrium after years of double-digit growth, they are still expanding far faster than overall inflation, leaving employers and insurers trying to figure out how to stomach the new increases. The answer may not please many consumers.
The medical cost trend for 2017 is projected to remain the same year-over-year, according to a new study from PwC’s Health Research Institute. Flat growth may feel like a win to some, but it’s still outpacing general price inflation. The consumer price index (CPI) has been trending at 1% over the past 12 months and isn’t expected to pick-up pace anytime soon. Meaning that employers and insurers are trying to figure out ways to adjust health insurance plans to keep cost gains lower than the expected 6.5% growth.
Read Full Article »