The S&P Healthcare Economic Composite Index indicates that the average per capita cost of healthcare services covered by commercial insurance and Medicare programs increased by 6.05% over the 12 months ending May 2012. This is a deceleration of six basis points from the +6.11% rate posted for April 2012, but still above what was experienced throughout 2011 and early 2012.
As measured by the S&P Healthcare Economic Commercial Index, healthcare costs covered by commercial insurance plans increased by 8.38% over the year ending May 2012, down from the +8.41% reported for April 2012. Growth rates in Medicare claim costs rose by 2.52%, according to the S&P Healthcare Economic Medicare Index, down from April’s +2.60%.
The Professional Services Index annual growth rate increased from April 2012′s +6.16% to May’s +6.27%. The Hospital Index’s growth rate fell to +5.56% in May from its +5.77% April rate.
In May 2012, the Professional Services Medicare Index increased 2.89%, its lowest annual rate since October 2009 and down from April 2012′s +3.11%. The Hospital Medicare May’s annual growth rate was unchanged from April, +2.05%. The Professional Services Commercial Index increased to +7.99% in May, from +7.70% in April; and the Hospital Commercial Index decelerated to +8.38% in May from the +8.78% posted for April.
Download and read the complete S&P Healthcare Economic Indices press release here.
Cost
John Cookson, S&P
The S&P Healthcare Economic Composite Index indicates that the average per capita cost of healthcare services covered by commercial insurance and Medicare programs increased by 6.14% over the 12 months ending April 2012. This is almost a half a percentage point jump from the +5.65% rate posted for March 2012.
As measured by the S&P Healthcare Economic Commercial Index, healthcare costs covered by commercial insurance plans increased by 8.46% over the year ending April 2012, up from the +7.78% reported for March 2012. Growth rates in Medicare claim costs rose by 2.60%, according to the S&P Healthcare Economic Medicare Index, up from March’s +2.42%.
The Professional Services Index annual growth rate also increased from its March 2012 +5.58% rate to April’s +6.18%. The Hospital Index annual growth rate increased to +5.81% in April, from its +5.44% March rate.
In April 2012, the Professional Services Medicare Index rose 3.11%, up from March’s +3.01%. The Hospital Medicare annual growth rate was also up in April, to +2.04% from its March +1.80% rate. The Professional Services Commercial Index increased to +7.74% in April, from +6.86% in March; and the Hospital Commercial Index accelerated to +8.85% in April from the +8.39% posted for March.
“All Healthcare Economic Indices’ annual growth rates increased in April 2012 from what we published for March,” says David M. Blitzer, chairman of the Index Committee at S&P Indices. “There is a clear upward trend across all annual growth rates, which began around October 2011, and we have now reached close to the top of the range of price changes established over the last few years. The April increase in the Composite’s annual growth rate was largely driven by a substantial jump in commercial plans.
“While we saw acceleration in all types of health cost growth rates in April, those funded by commercial insurance plans increased at a faster pace than their Medicare counterparts. Our headline commercial index showed that costs for those plans increased by 8.46% in April 2012 versus the prior year. This is almost back to the recent high we saw in September 2010. The decelerating trend we saw in late 2010 and early 2011 has ended. We are now witnessing sustained increases in healthcare costs.
Read more…
Cost
John Cookson, S&P
The S&P Healthcare Economic Composite Index indicates that the average per capita cost of healthcare services covered by commercial insurance and Medicare programs increased by 5.75% over the 12 months ending February 2012. This is an acceleration from the +5.23% annual growth rate posted for January 2012.
Healthcare costs covered by commercial insurance plans, as measured by the S&P Healthcare Economic Commercial Index, increased by 7.73% over the year ending February 2012, up from the +7.09% reported for January 2012. As measured by the S&P Healthcare Economic Medicare Index, growth rates in Medicare claim costs rose by 2.72%, up from the +2.39% reported for January 2012. The Professional Services and Hospital broader indices’ annual growth rates also increased from their January 2012 rates; these indices posted February 2012 annual rates of +5.71% and +5.52% respectively.
The Professional Services Medicare Index, which had hit a two-year low of +3.31% in January 2012, recorded a slight increase in February 2012 with an annual growth rate of +3.55%. The Hospital Medicare annual growth rate continued its upward trend in February, with a +1.94% reading. The Professional Services Commercial Index accelerated to +6.78% in February from +6.04% in January; and the Hospital Commercial Index increased to +8.41% in February from +7.90% in the previous month.
Read more…
Cost
John Cookson, S&P
The S&P Healthcare Economic Composite Index indicates that the average per capita cost of healthcare services covered by commercial insurance and Medicare programs increased by +5.21% over the 12 months ending January 2012. This was a decline from the +5.30% annual growth rate posted for December 2011.
As measured by the S&P Healthcare Economic Commercial Index, healthcare costs covered by commercial insurance plans increased by +7.05% over the year ending January 2012, down from the +7.11% reported for December 2011. Growth rates in Medicare claim costs rose by +2.40%, as measured by the S&P Healthcare Economic Medicare Index, down from the +2.52% reported for December. The Professional Services Index’s annual growth rate also decelerated from its +5.37% December 2011 rate, increasing by +5.13% in January. The broad Hospital Index’s annual growth rate increased slightly to +5.03% in January from its +4.99% December pace.
Looking at the narrower subindices, the Professional Services Medicare Index hit a two-year low of +3.32% in January 2012, down from +3.73% in December 2011. The Hospital Medicare annual growth rate increased in January at +1.56%, up from its +1.48% December level. The Professional Services Commercial Index decelerated to +6.02% in January from +6.15% in December; and the Hospital Commercial Index marginally decreased to +7.84% in January from +7.85% in the previous month.
“Healthcare costs’ annual growth rates decelerated modestly in January,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “The fall and early winter of 2011 was highlighted by a general upward trend in healthcare costs, as measured by annual rates of change. This month’s data, which was through January 2012, showed a modest deceleration in most types of healthcare costs, but not by enough to show any reversal of this trend. Over the past six months or so, annual rates of change in per capita healthcare costs were generally rising.
Read more…
Cost
John Cookson, S&P
We blogged last week about the healthcare cost trend, citing the S&P Economic Healthcare Indices. The Milwaukee Journal Sentinel takes a closer look at these trends. Here is an excerpt:
The indexes show that health care spending, which is now more than $2.6 trillion a year, continues to rise more than spending on other goods and services.
The steepest increase last year was in hospital costs for commercial health insurers. The index that tracks those costs rose 7.95% after increasing 8.66% in 2010 and 5.25% in 2009.
Here, too, costs are increasing much fast than two years ago.
“The economy has had a big impact on what’s going on,” said John Cookson, a consulting actuary with Milliman.
One factor is higher prices…But Cookson said there is a growing focus on slowing the rise in health care costs.
“Hospitals appear to be serious about becoming more efficient,” he said.
Health plans also seem more open to trying new approaches to control costs, he added.
And employers know they can’t keep absorbing increases of 7% to 10% a year in the cost of health benefits.
All that has made him somewhat optimistic for the long run.
“I feel we are going to get to a breaking point, if we are not already there,” he said.
Cost
John Cookson, S&P
S&P Indices today announced the results of its S&P Economic Healthcare Indices for the year ending December 2011. Across the board, healthcare costs as measured by annual rates of change went up in the last month of the year. The S&P Healthcare Economic Composite Index indicates that the average per capita cost of healthcare services covered by commercial insurance and Medicare programs increased by 5.28% over the 12-months ending December 2011. This was an increase from the +4.85% annual growth rate posted for November 2011.
As measured by the S&P Healthcare Economic Commercial Index, healthcare costs covered by commercial insurance plans increased by 7.11% over the year ending December 2011, moving up from the +6.63% reported for November. Growth rates in Medicare claim costs rose by 2.51%, as measured by the S&P Healthcare Economic Medicare Index, up from the 2.15% reported for November. The broad Hospital and Professional Services Indices annual growth rates also posted increases from their November 2011 rates; they increased 4.99% and 5.34%, respectively, from their December 2010 levels. These are above the +4.69% and +4.76% respective annual rates posted in November 2011.
Looking at the narrower sub-indices, the Professional Services Medicare Index rose from its recent low of +3.42% in the year ending November 2011 to +3.72% in December. The Hospital Medicare Index increased to +1.50% in December, from its +1.09% November annual rate. The Professional Services Commercial Index went up to +6.09% in December from +5.38% in November; and the Hospital Commercial Index increased to +7.95% in December from +7.75% in the previous month.
Read more…
Cost
John Cookson, S&P
The S&P Healthcare Economic Composite Index indicates that the average per capita cost of healthcare services covered by commercial insurance and Medicare programs increased by 5.13% over the 12 months ending November 2011. This is a decline from the +5.29% annual growth rate posted for October 2011.
As measured by the S&P Healthcare Economic Commercial Index, healthcare costs covered by commercial insurance plans increased by 6.96% over the year ending November 2011, down from the +7.10% reported for October. Growth rates in Medicare claim costs rose by 2.37%, as measured by the S&P Healthcare Economic Medicare Index, down from the 2.55% reported for October. The S&P Healthcare Economic Professional Services Medicare Index also dropped from +4.15% in the year ending October 2011 to +3.62% in November. The S&P Healthcare Economic Hospital Medicare Index increased slightly to +1.33% in November from its +1.28% October value.
Read more…
Cost
John Cookson, S&P
The S&P Healthcare Economic Composite Index indicates that the average per-capita cost of healthcare services covered by commercial insurance and Medicare programs increased by 5.11% over the 12 months ending October 2011. This is a significant increase over the +4.74% annual growth rate posted in September 2011.
As measured by the S&P Healthcare Economic Commercial Index, healthcare costs covered by commercial insurance increased by 6.91% over the year ending October 2011. This annual rate has risen for a fourth consecutive month. Growth rates in Medicare claim costs rose from its September low of +2.03% to an annual rate of +2.39%, as measured by the S&P Healthcare Economic Medicare Index. The S&P Healthcare Economic Hospital Medicare Index also increased from +0.66% in the year ending September 2011 to +1.12% in October.
Read more…
Cost
John Cookson, S&P
Data released today by S&P Indices for the S&P Healthcare Economic Composite Index indicate that the average per capita cost of healthcare services covered by commercial insurance and Medicare programs increased by 5.75% over the 12 months ending September 2011. This is a slight increase over the +5.71% annual growth rate posted in August 2011 and the fifth consecutive increase since the index hit its lowest rate of +5.32% in April 2011.
As measured by the S&P Healthcare Economic Commercial Index, healthcare costs covered by commercial insurance increased by 8.03% over the year ending September 2011 , also increasing for the fifth consecutive month. On the other hand, growth rates in Medicare claim costs hit yet another low, rising at an annual rate of +1.97% as measured by the S&P Healthcare Economic Medicare Index. The S&P Healthcare Economic Hospital Medicare Index also posted a record low annual rate of +0.71% in the year ending September 2011. This is a staggering 7.59 percentage points lower than the highest annual growth rate of +8.30% recorded for this index just two years ago in August 2009.
The Hospital and Professional Services Indices posted increases of 5.51% and 5.78%, respectively, from their September 2010 levels. These are marginal changes from the +5.40% and +5.83% respective annual rates posted in August 2011.
“As we enter the fall, we continue to see the summer trends of a deceleration in the annual growth rates of Medicare costs, while those of commercial costs continue to moderately accelerate,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “The Composite Index posted an annual rate of +5.75%, the Commercial Index +8.03% and the Medicare Index +1.97%. With September’s data, both the composite and commercial indices posted five consecutive months of accelerating annual growth rates.
Read more…
Cost
John Cookson, S&P
National Underwriter picks up on a healthcare cost dynamic that has mostly been slipping under the radar: Commercial insurers are picking up the bulk of cost increases nationwide, while Medicare costs remain fairly flat. Here is an excerpt:
The per-capita cost of the health care services covered by commercial health insurers is increasing much faster than the per-capita cost of the services covered by Medicare.
S&P Indices, New York – one of S&P Ratings Services’ sister companies – says the S&P Healthcare Economic Composite Index shows per-capita health care costs for both commercial and Medicare programs were 5.73% higher in August than in August 2010.
The year-over-year increase was up slightly from 5.69% in July.
But S&P found that the year-over-year increase recorded in August for Medicare program health care costs was just 2.16%.
For commercial plans, the rate of increase was 7.89%.
The full article is available here. The August cost results are available here. Background on the S&P Index is available here.
Cost
S&P
Follow us on Twitter
