Look first at the hospital components of this cost trend.
The inpatient cost trend increased from 7.1% to 7.7% this year. Utilization remained flat and the increase was instead driven by unit costs.
The outpatient cost trend increased from 9.4% to 10.2%, again largely due to an increase in unit costs.
The physician cost trend decelerated, though physician costs remain the biggest piece of the puzzle.
Pharmacy costs saw a deceleration in the cost trend but still increased higher than other components of care at 7.9%, with just under 40% of that due to increased utilization. The increased use of generics over previous years complicates this cost trend.
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