In 2012, national health expenditures increased by an estimation of 4.3 percent, which is slightly higher than 3.9 percent between 2009 and 2011, according to research by Altarum Institute’s Center for Sustainable Health Spending.
This figure could be revised, but it marks the fourth-consecutive year of record-low growth from all previous years, the research finds. More than 50 years of official health spending data have been reported.
From December 2011 to December 2012, health care prices increased by 1.7 percent, which is the lowest year-over-year growth since February 1998, while the 12-month moving average of 2 percent is the lowest reading since December 1998, the research shows. In January, the health care sector added 23,000 jobs. This is on par with the 24-month average of 24,000 jobs. After calculating benchmark revisions, the health care sector brought in 70,000 jobs from 2011-2012, raising overall jobs by 598,000.
“While slightly above the flat three-year experience of 3.9 percent, our data demonstrates continued historically low health care spending growth,” says Charles Roehrig, director of Altarum Institute’s Center for Sustainable Health Spending. “This is driven by exceptionally low health care price growth coupled with moderate utilization growth. The paradox of slow spending growth and high employment gains is less pronounced in light of the revised lower payroll employment numbers but still calls out for an explanation.”
The research also finds that the health spending share of the gross domestic product was 18.2 percent in December 2012, marking a small rise from 17.9 percent, as reported by the Centers for Medicare and Medicaid Services in 2011. Partly, this gain is due to a drop in GDP during the fourth quarter of 2012. As there has been moderate growth in economy-wide payroll jobs, the health sector share of total employment reached a record high of 10.74 percent, up from 10.41 percent in July 2009.
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