Factors Affecting Medical Cost trend in 2014

US Health spending$2.7 trillion.

What is causing the slowdown in medical inflation?

Great uncertainty hangs over 2014, the watershed year for ACA implementation. Millions more Americans are expected to gain coverage through Medicaid or new online marketplaces. No one knows exactly who will enroll, what their medical needs will be, or how the industry will manage them.

But none of these changes will likely directly affect the medical cost trend. Total spending will rise with the cost of caring for the newly insured, but the rate of growth, which is based on unit cost, should remain at some of the lowest levels since 1960. What 2014 factors will slow medical cost growth?

Read HRI’s in-depth discussion on the deflators and inflators that will affect the 2014 medical cost trends.

Factoring in Conservatism: uncertainty in 2014 and how the industry is navigating in a post-reform world.

Mark D. Birdwhistell,
VP Administration and External Affairs,
UK HealthCare