On going trends affect health spending in 2016

Factors affecting spending growth rate in 2016

Employer cost-shifting, greater use of virtual care, and more savvy consumers being guided toward cost-effective care will put downward pressure on health spending. Although the ACA has not greatly influenced health spending, its impending “Cadillac tax” on high-cost plans has businesses scaling back their plans and shifting more of the cost onto employees. Remote monitoring is saving billions of dollars across the healthcare system and the array of people to guide consumers through complicated healthcare choices is growing.

Other trends tug from the opposite direction. More drugs in the FDA pipeline with high costs are following the Hepatitis C specialty drugs. Healthcare companies are also being hit with “supersized” cyber security investments to protect individual health data against breaches.