A new report on price trends in health care shows that in 2018, health care prices continued to rise for American consumers. However, that year's data showed a slight decrease in the rate of growth, and an increase in utilization. The report by the Health Care Cost Institute (HCCI) found that on average, employer-sponsored insurance spending rose to $5,892 per person. Between 2014 and 2018, the HCCI research found spending rose by $610 per person for Americans with employer-based insurance, an average 4.3 increase per year. In 2018, health care spending grew by 4.4 percent, a bit more than the growth rate of 4.2 percent in 2017. Related: Low-income households spend greatest proportion of income on health care payments The study noted that average prices grew 2.6 percent in 2018, the lowest rate of growth in the five-year period. This was due in part to an increase in utilization. Overall, however, the consistent growth means that health care prices were 15 percent higher in 2018 than in 2014. "Prices, spending, and out-of-pocket costs continue to rise for the 160 million Americans with employer-sponsored health insurance," said Niall Brennan, president and CEO of HCCI. "Higher prices for medical services continue to drive most spending increases, but in 2018 we also saw an uptick in utilization for the first time in several years. If these price and utilization trends continue, we expect spending growth to stay on an upward trajectory in the coming years." |

Out-of-pocket costs increasing

The report found that out-of-pocket spending is growing rapidly, but not as rapidly as the overall rate of spending for consumers. At the same time, the percentage of Americans in high-deductible health plans has also grown, from 25.8 percent in 2014 to 33.5 percent in 2018. For 2018, The average out-of- pocket spending for those on employer plans increased to $907 per person. "People with job-based insurance saw their out-of-pocket costs rise 14.5 percent, or $114, between 2014 and 2018," said John Hargraves, senior researcher and co-author of the report. Drug costs, not surprisingly, were an area of significant cost increases. Per-person drug costs grew by 29 percent in the four-year period, although the researchers noted their data did not include manufacturer rebates. The study found that out-of-pocket costs for pharmaceuticals varied greatly depending on whether the drugs were generic or brand-name drugs. "Generic drugs accounted for 88 percent of all prescriptions and had an average out-of-pocket price that was less than a one-fifth of brand drugs," the study said. |

Increased spending across the board

In the three other major areas of spending (aside from pharmaceuticals), spending increases ranged from 11 percent to 16 percent for the four-year period. The sharpest increase for 2018 was in the area of outpatient visits and procedures, which grew at 5.5 percent. Inpatient services saw an 11.4 percent increase between 2014 and 2018. However, the study noted that the 2 percent price increase in 2018 was lower than the annual increases from 2014 to 2017. In the area of professional services, spending increased 16 percent, driven by office visits and administered drugs, the study found. Psychiatry saw a spending growth of 43 percent from 2014 to 2018, which was driven mostly by increased utilization. Read more: |

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