I’ve seen it reported in many places that in 2007 healthcare spending in the United States slowed. The rate of increase (not overall decrease in spending) was the lowest in nine years. Most of this was attributed to a slowed increase in spending for prescription drugs, which was the slowest since 1963. This data comes from a report published by Health Affairs.
However, the report mentions that other types of healthcare spending increased at brisk rates. In 2007 $2.2 trillion was spent on healthcare, an average of $7,421 per person.
Spending on prescription drugs rose 4.9% to $227.5 billion compared to 8.6% in 2006. The report was authored by Micah B. Hartman and he gives 3 reasons for the deceleration of drug spending; an increase in the amount of prescriptions being filled with generic drugs, a slowdown in the amount of increase in drug pricing and safety concerns lowering the demand of some drugs. The increase in the amount of prescriptions being filled with generic drugs is promising in that people are starting to control the amount they spend for healthcare.
The report goes on the mention that spending on hospital care rose 7.3% in 2007 compared to 6.9% in 2006. Spending for doctors services rose 5.9% which is lower than the 6.4% increase in 2006. The report attributes this to a reduction in Medicare payment doctors receive for imaging services.
Out of pocket spending (the amount individuals are responsible for paying before their insurance pays) also increased 5.3% in 2007 to $268.6 billion. In 2006 the increase was 3.3%.
With more Americans insured with higher deductibles and HSA’s we need to make every dollar count. The move by more individuals to generic prescription drugs is a step in the right direction. Other steps to reduce costs are to review all medical bills carefully and make sure there are no errors on your bills. Consulting a professional patient advocate to help negoatiate your medical bills is also an option.
