We’ve all heard a lot about the slowing of health care cost inflation. Yet, coming from Dan Diamond of The Advisory Board, here are some very interesting points of relevance to the topic:
“A lot of people have noted that health care spending has slowed,” Amitabh Chandra, an economist and the director of health policy research at the Harvard Kennedy School, told me last week.
“Many of us would like to think that this is a more permanent slowdown,” he added.
In late April, the Bureau of Economic Analysis released an advance estimate of first-quarter GDP that had one noticeably eye-popping statistic — spending on healthcare grew 9.9%, the biggest percent change in more than three decades.
I'm still digesting exactly what this means for health care policy, but if the
growth in health care costs is being "driven by the number of treated enrollees
as opposed to the cost of treatment," is that a problem?:
Center-left Washington is arguing with ever-greater ferocity that center-right Washington is mistakenly obsessed with deficit reduction. Part of the argument is familiar: 1. Low Treasury interest rates show markets unconcerned about the $16 trillion national debt. 2. As the economy continues to heal, annual deficits will shrink substantially.
Peter Orszag: Economy Can’t Be All That’s Slowing Health Costs:
A new set of projections released last week by Medicare’s actuaries… suggests the deceleration in the growth of health costs we’ve seen over the past few years is ephemeral… [due] to the “lingering effects of the economic downturn and sluggish recovery” and to increases in cost sharing. Both of these explanations have serious shortcomings….
Following the rather stunning shenanigans of Q1 GDP with regard healthcare spending (as we detailed here), we thought, four years after its passage in 2010, it worth analyzing Obamacare's economic impact? Beforehand, economists generally believed that the broader coverage would raise the demand for healthcare goods and services, although there was some disagreement about related effects on healthcare inflation.