Health policy

Health Care Cost Growth Among the Privately Insured

Publisher: Project HOPE - The People-to-People Health Foundation, Inc.

Published: September/October 2009

Health Care Cost Growth Among the Privately Insured

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Health Care Cost Growth Among the Privately Insured By: Bundorf MK, Royalty A and Baker LC Published In: Health Affairs, 28(5), pp. 1294-1304	Quantity

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Controlling health care cost growth remains a high priorityfor policy-makers and private decision-makers, yet little is knownabout sources of this growth.

In this article the authors examined spending growth amongthe privately insured between 2001 and 2006, separating thecontributions of price changes from those driven by consumption.Most spending growth was driven by outpatient services and pharmaceuticals,with growth in quantities explaining the entire growth in outpatientspending and about three-quarters of growth in spending on prescriptiondrugs. Rising prices played a greater role in growth in spendingfor brand-name than for generic drugs.

These findings can informefforts to control private-sector spending.

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Health policy

Health Care Cost Growth Among the Privately Insured

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