According to a CMS report published in the latest issue of Health Affairs, health care spending increased 6.9% in 2005--the third consecutive year it has fallen.
Given that medical cost trend, as reported by the health plan industry, fell again in 2006, I fully expect CMS to report a 2006 trend rate of around 6.5% when they do their calculation again next year. And, given that trend looks to be falling still further in 2007, I expect we will see five straight years of lower trend right around 6% by the time the 2007 numbers are in.
There are differences between overall health spending as reported by CMS and health plan trend rates used to calculate the new insurance rates--but these two numbers are close together and tend to move in tandem.
Will medical trend rats fall even further. What is driving this? What does this mean for the long-term public policy debate?
I dealt with these issues in two recent posts:
Whey is Health Care Cost Trend So Low?
How Low Will Health Care Cost Trend Go?
Avoid having to check back. Subscribe to Health Care Policy and Marketplace Review and receive an email each time we post.
- ► 2017 (23)
- ► 2016 (27)
- ► 2015 (26)
- ► 2014 (36)
- ► 2013 (48)
- ► 2012 (32)
- ► 2011 (36)
- ► 2009 (161)
- ► 2008 (151)
- Medicare Advantage Payments to Insurers Will Be Cu...
- The Individual Health Insurance Market Isn't Ready...
- It's the Cost of Health Care Stupid!!!
- Is the Bush Health Plan Tilted Too Far In Favor of...
- Health Savings Accounts (HSAs) and The Massachuset...
- The Bush Health Care Plan and U.S. Health Care Ref...
- More on the Bush Health Plan
- New Bush Health Plan Proposal to Be Announced in S...
- SCHIP Reauthorization--Will Medicare HMOs Pay for ...
- Back to "Regular Order"--The House Medicare Part D...
- Grassley and Baucus Key to Any Drug Negotiation Co...
- The House Part D Drug Negoatiation Debate is Heati...
- Health Care Trend Falling
- Good for the Governor of California!!!!
- More on the Democratic Part D Drug Negotiation Deb...
- HMO Stocks Fall on Medicare Advantage Worries---Wh...
- Bravo Kaiser Permanente!--As the Insurance Industr...
- The Democrats' Hollow Part D Proposal
- More Trouble for Humana's Part D Program
- The New Congress––Sniping or Civility?
- Health Care Middlemen––Don't Forget Value!
- ▼ January (21)