Slower Growth in Health Spending

New York Times (NY) (01/11/12)
The most recent federal data indicated that health care spending climbed in 2009 and 2010 at the slowest rate in five decades, increasing at about the same pace as the economy's growth. The driving force behind the slower growth was the recession and while many are hoping that the decrease came from less medically unnecessary care, others note that it was likely that many simply avoided necessary care simply because they could not afford it. Public and private source spending grew by around 3.8 percent in 2009, and 3.9 percent in 2010, but slowed for hospital care, nursing homes, prescription drugs and other services. Consumer out-of-pocket spending rose over 2009 levels in 2010, but the growth remained slower than the annual average has been since 2000. The health care reform law has had little impact, though it will create a Medicaid expansion in 2014, as well as a federal subsidy program.

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