Health care costs rise at slowest rate in 50 years
Source: USA Today
Health care costs rise at slowest rate in 50 years
Kelly Kennedy, USA TODAY 4:58 p.m. EDT July 29, 2013
WASHINGTON — Personal health care costs rose last year at the slowest rate in the last 50 years, the White House announced Monday, citing statistics aimed at bolstering the case for the 2010 health care law.
The 1.1% increase in personal consumption spending over the 12 months ending in May was due to decreases in hospital and nursing home services, according to a statement from Alan Krueger, chairman of the White House Council of Economic Advisers. Hospital readmissions rates dropped from an average of 19% to 17.9% for Medicare patients since the passage of the 2010 health care law, Krueger said.
The law is not affecting job growth, Krueger said. Job growth in industries that have traditionally not provided health insurance for their employees, such as restaurants, was higher. Restaurant sales and employment have increased more than any other retail sales industry since the law was signed, at about 11% for employment and 17% in retail sales, and weekly hours also have grown about 3% since the law was signed.
The announcement came after President Obama told The New York Times this weekend that support would come as the 2010 health care law is implemented, a hope that Americans will like the law's benefits when they take effect.
Read more: http://www.usatoday.com/story/news/politics/2013/07/29/administration-lowered-premiums-white-house/2596453/
= new reply since forum marked as read
oh wait. This is a good thing? never mind.
First, the income effect of the 2007-2009 recession hasn't abated at all. It is still with us, with median real household incomes being significantly lower than they were in 2000.
http://advisorperspectives.com/dshort/updates/Median-Household-Income-Update.php
Copays for most people have increased, insurance coverage has dropped, and even people with insurance are using significantly less services, on average, because they are strapped.
Premium costs don't have much of a factor, because the article is referring to the amount of services actually being delivered.
We'll have to wait for a couple of years, maybe three now since the employer mandate isn't going to be implemented until 2015, if ever, to see what happens as ACA is implemented. If insurance coverage increases but people still can't afford the copays, they still will use less services.
I looked at the CA silver exchange coverage, and the copays on it are high enough that many lower-income people simply won't be able to afford medical services. One ear or urinary tract infection, treated at the normal standard of care, could wind up cost them $200-$300 dollars. Furthermore, I don't think they are going to get access to doctors, because the copays on sick visits are the vast majority of the cost, so I don't think doctors will be able to treat many of them. They are still going to have to use community clinics or the ER.
It does seem to me that premiums are too high for the amount of care being delivered, and I am waiting to see what happens to insurance rates next.
Just think of how much slower costs would rise if we actually transitioned to a sane system like single-payer. 
