Healthcare spending growth on the decline

Posted on: Tuesday, January 17, 2012

When agents are trying to turn an insurance lead into a sale, issues relating to healthcare costs are often a significant impediment. But according to a recent study, the growth of healthcare spending has slowed significantly over the past few years.

Analysts at the Centers for Medicare and Medicaid Services report the rate of healthcare spending increased just 3.9 percent two years ago, totaling $2.6 trillion, or $8,402 per person.

While the overall cost is steep, the increase represents the slowest rate of growth for national healthcare expenditures in more than half a century, the report indicates.

Marilyn Tavenner, acting administrator for CMS, said this translates to lower premiums in the long run for policyholders.

"We have worked hard since the passage of the Affordable Care Act in 2010 to lower health care cost growth," said Tavenner. "We believe that the tools in health reform will help keep health care cost growth low while improving the value of care for consumers."

The report also found that health insurance premium rate increases diminished from 2.6 percent in 2009 to 2.4 percent in 2010. The spending growth rate has consistently trended downward since 2003.

Agents can use this study as proof for insurance customers that sufficient coverage can be obtained for an affordable price.

Posted In: Insurance News, Health Insurance

Enjoy this post? Share it with others.
  • Share on Digg
  • Share on Facebook
  • Bookmark on Google
  • Share on LinkedIn
  • Share on Reddit
  • Share on Twitter