Another Look at Healthcare Spending

Austin Frakt writing at The Incidental Economist “Chart: Health care spending growth factors“. Offers another chart from the JAMA study “The Anatomy of Health Care in the United States“. 

Frakt notes rightly so the majority of the slowdown (interesting word hints that it will pick up) is due to lower use and intensity growth. Which speaks to the economy in part and in part to what I believe are Americans become hypersensitive to healthcare, aging population seeking to improve outcomes, the screaming about the ACA. We can not go a day without a healthcare story slapping us in the face. Which is good. 

Frakt final points to the obvious “price growth remains robust by comparison”. The cynic in me sees this as the price setters are raising prices in response to the slowdown. That’s what occurs in a free market. Or is that as spending slows prices drop since more and more consumers and insurance companies are looking for low cost high value healthcare. 

Leave a Reply

Your email address will not be published.