Blog | Thursday, September 9, 2010

QD: News Every Day--'Moderate' cost increases for health care this decade

Health care will cost slightly more than previously predicted, according to Medicare's actuary. Spending this decade could increase 6.3% annually as the reform legislation is implemented, according to the report published in Health Affairs.

The Centers for Medicare and Medicaid Service's Office of the Actuary report described the impact as "moderate". By 2019 Americans will be spending $265 per year more than they would have without health care reform.

The "Cadillac tax" will drive a 9% out-of-pocket cost increase for consumers as employers whose plans fall under that provision seek to escape it by increasing co-pays and other deductibles. But as more consumers take up insurance under the mandate, within a decade the cost curve will begin to bend. (Health Affairs, AP, The Fiscal Times)