Study Finds Health Care Spending Will Rebound When Economy Picks Up


Responses to the question: "For future pr...

Responses to the question: “For future presidential elections, would you support or oppose changing to a system in which the president is elected by direct popular vote, instead of by the electoral college?” Data from Washington Post-Kaiser Family Foundation-Harvard University Survey of Political Independents, conducted May-June 2007, available at http://www.washingtonpost.com/wp-srv/politics/interactives/independents/post-kaiser-harvard-topline.pdf (Photo credit: Wikipedia)

The analysis by The Kaiser Family Foundation says the slowdown in
health spending over the past several years was largely driven by the
economic malaise.

Los Angeles Times: Study: Growth In Health Spending, Curbed By Recession, To Rebound

A new study attributes a slowdown in U.S. healthcare spending to the
recent recession and predicts more rapid growth as the economy
strengthens. The report issued Monday by the Kaiser Family Foundation
seeks to shed light on the reasons behind the recent drop-off. The
analysis found that economic factors related to the recession accounted
for 77% of the reduced growth in national healthcare spending, which
totaled an estimated $2.8 trillion in 2012 (Terhune, 4/22).

The Washington Post’s WonkBlog: Here’s Why Health-Care Costs Are Slowing

The answer has huge implications for the federal budget, which now faces
threats of really fast growth in Medicare, Medicaid and other health
programs. If those programs grow like they have for the past few years —
at the same rate as the rest of the economy — then that frees up lots
of funds for whatever other investments the federal government wants to
make (Kliff, 4/22).

The Hill: Study Predicts Rise In Healthcare Cost Growth By 2019

A stronger U.S. economy will contribute to a rise in the growth of
healthcare costs over the next six years, ending the current
record-breaking slowdown, according to a new study. The Kaiser Family
Foundation (KFF) predicted that by 2019, annual healthcare cost growth
will be closer to historic averages — over 7 percent compared to 3.9
percent between 2009 and 2011 (Viebeck,4/22).

CQ HealthBeat: Nation’s Health Spending Problem Remains Unsolved, Kaiser Analysts Say

Speculation that the nation’s health spending problem has somehow been
solved or cut down to size is unrealistic, says a new Kaiser Family
Foundation study that concludes 77 percent of the slowdown stems from
the weak economy. … But the analysts had a bit of good news. They said
the chilling effect on individual health spending due to the weak
economy will continue for a few more years (Reichard, 4/22).

(KHN is an editorially independent project of The Kaiser Family Foundation.)

Meanwhile, a different analysis is released on health issues–

Reuters: S&P Sees Pension Funding Burden Of Nonprofit Healthcare

Pension liabilities, expenses and contributions remain a burden on U.S.
not-for-profit hospitals despite improvements in the investments used to
fund the retirement systems, Standard & Poor’s Ratings Services
said on Monday. Large pension funding demands will likely “be a drag on
the sector for several years,” it added (Lambert and Trokie, 4/22).

This is part of Kaiser Health News‘ Daily Report – a summary
of health policy coverage from more than 300 news organizations. The
full summary of the day’s news can be found here and you can sign up for e-mail subscriptions to the Daily Report here. In addition, our staff of reporters and correspondents file original stories each day, which you can find on our home page.

Advertisements