‘ObamaCare’ is bending the cost curve on healthcare costs
Posted by AzBlueMeanie:
More good news on the implementation of the Affordable Care Act (aka "ObamaCare") — it is bending the cost curve on healthcare costs, just as it was designed to do, which also bends the curve on federal deficits.
The latest good news come from the Federation of American Hospitals, which represents for-profit hospitals, and PwC’s Health Research Institute.
Both argue in new studies out today that a big chunk of the slowdown is
structural — and won’t disappear as the economy improves. Why
are health care costs rising more slowly?:
Dobson DaVanzo & Associates, in a report for the hospital group,
concludes that if present trends continue Medicare savings will be $1
trillion more in the next 10 years than the savings projected by the
Congressional Budget Office in May. The changes, Al Dobson said in an
interview, are the result of marketplace pressures and the Affordable
Care Act, which set new penalties for hospital readmissions, and
included bundled payments and other incentives for hospitals and doctors
to find ways to cut costs without hurting patients.
* * *
PwC uses a medical cost trend–or growth rate–that measures the
changes in the cost to treat patients and is influenced by the cost of
products and services and utilization. The projection is based on
interviews with health plans, a survey of employers and other
data. They conclude that
health-care spending growth will dip to 6.5 percent next year, adding
that the slowing of health-care spending “defies historical
post-recession patterns and is likely to be sustained” even as millions
of uninsured Americans enter the health system next year.