Healthcare prices rise, but spending flat

Healthcare prices in May 2014 were 1.8 percent higher than in May 2013, well above the 12-month moving average of 1.3 percent, according to a recent brief from the Altarum Institute.

The data come from the monthly Health Sector Economic Indicators briefs released by Altarum Institute’s Center for Sustainable Health Spending.

According to the July HSEI, hospital prices grew 2.1 percent, while prescription drug prices rose 3.6 percent. Physician and clinical services prices, which exhibited near-zero growth in the first quarter of 2014, grew by 0.6 percent.

Altarum reports that overall U.S. health spending in May 2014 grew 4.8 percent over May 2013, a figure that was estimated for growth in the first quarter of 2014, compared to the first quarter of 2013. Altarum said this represents a significant downward revision to earlier estimates. Spending in May, year over year, increased in all major categories, with prescription drugs growing the fastest at 12.2 percent.

“The rise in healthcare prices and employment during the second quarter suggests that spending will rebound from the unexpectedly slow first quarter rate,” said Charles Roehrig, director of the center, in a statement. “However, we are still not detecting signs of the increases in utilization expected from expanded coverage under the Affordable Care Act and suspect the effect may be more incremental and gradual than first expected.”