The progressive slowdown of health care inflation in the United States can be as low as 6.5% next year. This development in the American health care situation is made possible through intensified measures by employers and the Affordable Care Act.
The inflation rate decrease in 2014 is based from findings reported by the Health Research Institute of PricewaterhouseCoopers, which is a Limited Liability Partnership. The report’s writers stated that this slowdown contradicts the expected trend in US health care costs.
Before 2005, the inflation rate of American health care insurance was as high at more than 8% within a year. The PwC Health Research Institute notes that the decline in rate is caused by the Obama administration’s health care reforms and similar health care constitution changes during that time.
Americans have to pay more for health care costs even when going through economic recession. In order to alleviate their problem, health care plans are assessed and even cancelled.
One of the factors that caused the inflation’s slowdown is that more people received health care services in more affordable facilities such as retail clinics. There are instances where medical expenses in these facilities are more than 60% lower than health care costs in hospitals.
At the present, the number of companies and other employers that seek contracts with major health care systems is on the rise. Even if health care expenses in these systems are quite expensive, they provide specialized medical practices such as spinal fusion. Despite the costs, these dominant health systems still offer lower prices compared to other health care programs.
Another factor for the slowdown is the reduction of unused expenditure with health care. Two years ago Dr. Donald Berwick, head of Medicare and Medicaid, noted that 30% of health care spending did not benefit recipients. As a result, the US federal government observes stricter amendments to health care providers with wasteful spending.
Last year, there was a significant decrease of hospital readmissions. This trend is predicted to become even lower next year because of policy changes in hospitals.
In addition, more than 40% of employers are planning to offer high deductible health plans to their employees at the present. This information is based from a PricewaterhouseCoopers survey in this year. The high costs of employee health care in previous years prompted employers to take action, which led to the current inflation slowdown.
The report’s writers state that the inflation rate will steadily decline even if millions of Americans enroll for health insurance through the Affordable Care Act.
Aside from lower health care costs, Americans can also benefit from direct health care arrangements between hospitals and employers. Patients have better chances of choosing the health care method of admission they prefer. Furthermore, hospitals may charge significantly lower rates for health care recipients.
PricewaterhouseCoopers is the leading professional services firm throughout the world. It provides value-added professional services that focus on consultations, tax matters, and audit issues. In the US, PwC supports 16 major industries. Last year, its United States branch is the fifth-largest privately-owned organization in the country.