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Health Cost Increase May Double 2010 Rate

From a seemingly unfazed Reuters:

Healthcare costs to rise 7.5 percent in 2013: report

By David Morgan
May 31, 2012

WASHINGTON (Reuters) – The cost of healthcare services is expected to rise 7.5 percent in 2013, more than three times the projected rates for inflation and economic growth, according to an industry research report released on Thursday.

More significantly, according to a sentence Reuter buried in the penultimate sentence of their article, healthcare costs are projected to "nearly double" the 3.9% rise in healthcare spending that occurred in 2010, which is the last year for which official figures are available. (See below.)

But wasn’t the whole argument for Obama-Care was to drive the cost of healthcare down? How come it keeps going up? Especially, as more and more of it goes into effect?

But premiums for large employer-sponsored health plans could increase by only 5.5 percent as a result of company wellness programs and a growing trend toward plans that impose higher insurance costs on workers, said the report by the professional services firm PricewaterhouseCoopers, or PwC.

The projected growth rate of 7.5 percent for overall healthcare costs contrasts with expectations for growth of 2.4 percent in gross domestic product and a 2.0 percent rise in consumer prices during 2013, according to the latest Reuters economic survey

Notice how quickly Reuters jumps in with some slightly better news that is based on a big "if." Meanwhile, back on planet earth the projection is for a 7.5% increase. Which will probably still turn out to be too low.

More than half of the 1,400 employers surveyed by the firm are considering increasing their employees’ share of health benefit costs and expanding health and wellness programs in 2013, according to the report

Yippee! Employees are going to be made to pay more. But won’t this be an additional increase in healthcare cost for most people?

Upward pressure on healthcare costs comes in part from a rebounding economy and the growth of new medical technologies, including robotic surgery and the nuclear medicine imaging technique known as positron emission tomography

You see? This "upward pressure on healthcare costs" has nothing to do with Obama-Care. It’s all due to the "rebounding economy" and "positron emission tomography."

PwC’s projection of 7.5 percent growth is nearly double a 3.9 percent rise in healthcare spending that the federal government says occurred in 2010, the last year for which official figures are available

Maybe Price Waterhouse isn’t "seasonally adjusting" like the administration tends to do.

But, again, notice how Reuters buried this bit of information in the second to last sentence of their article.

This article was posted by Steve on Thursday, May 31st, 2012. Comments are currently closed.

3 Responses to “Health Cost Increase May Double 2010 Rate”

  1. Rusty Shackleford says:

    We, as a society, have finally slid off into a very strange world. I liken it to a movie where it’s so surreal as the man walks into a shop from a downpour, where the storekeeper’s radio is giving the weather report of “continued, sunny, clear weather today, followed tomorrow by another wonderful, perfect weather day”. Or, if you’ve seen the mini-series re-deaux of “The Prisoner” you might get a better sense of it.

    Do these “administrators” actually believe their own garbage? I think some of them do, which only makes them useful idiots. I still think that D’oh-bama is somewhere between ignorant ideologue and crafty little sh*t. He lacks the technical expertise to actually mastermind anything, I think so he floats his misbegotten utopian dreams to his lackeys and they are the ones who implement it.

    As for “obama-care” he never took pen-to-paper as regards authoring any of it. It has been in certain communists’ top drawer for decades and the last time it was taken out was when Hitlery, a non-functioning government operative, not elected to any office, proposed it. It’s been around for a long time, having many authors and creators and the communists in our government are so bloody stupid as to simply use it as a tool for control of the people.

    Thanks to our dreadful education system and a complacent public that actually believes that government is there to look out for us, they will not realize the folly of this attitude until it’s way too late and they are standing in line with a ruptured appendix, facing death and being told to fill out another form and the appendix doctor is over in the next county, but he’ll be back next week.

    The lack of cynicism in today’s society is very disturbing. I noticed it some time ago when I was walking through a car dealership and listening to some of the deals being made where the salespeople schmoozed suckers by pretending to care about their kid in Cub Scouts, or talking about other inconsequential things to get the customers guard down. It seems to work.

    Again, Budweiser sales exploded when the three frogs appeared on TV.

    Now we have people who believe anything, as long as it comes from the communist party.

    This will be our undoing. Our own ignorance and desire to have something for nothing.

    But this article is refreshing because there are still those who recognize a pig in a poke when they see one. This is a good thing.

  2. Mithrandir says:

    WE HAVE SEEN THIS…..HOW MANY TIMES BEFORE?

    They get you to ‘yes’ (like every good used car salesman) then do what ever the heck they want.
    “No no no! I didn’t want this!”
    “Sorry buddy, when you said ‘yes’ we thought this is what you meant!”

    *SIGH* Famous Gov’t Cost Over-runs
    http://www.downsizinggovernment.org/government-cost-overruns
    http://www.cato.org/pubs/tbb/tbb-0309-17.pdf

  3. MZmaj7 says:

    According to figures at the Kaiser Family Foundation, 2011 saw a 9% increase in health costs. So 7.5% might actually be an improvement, if these projections pan out. KFF also showed a microscopic 3% increase in health costs in 2010.
    http://ehbs.kff.org/2010.html
    http://www.kff.org/insurance/092311nr.cfm

    As for why medical costs are up, the answer is obviously health care regulation and private and public debt (which can no longer subsidize many health institutions) — both of which have already decreased competition substantially throughout the industry, as any medical professional will tell you. This is in addition to general monetary inflation.

    All of these describe our “rebounding economy,” but not in the superficial sense Reuters means.

    Reuters further points to greater technological innovation to explain higher prices. This is upside-down economics. New entrants into the market always depress competing prices.


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