A new study by the Health Care Cost Institute (HCCI) found that the cost of health care and spending on health care both increased dramatically between the start of 2014 and the end of 2018. According to the study, price increases for provider services are the main reason why.
Annual spending per person increased 18.4% over the five-year period, from $4,978 to $5,892, the study said. After figures are adjusted for inflation, the cost of care per person increased by $610 over those five years. While utilization did increase, growing by 3.1% across all billing categories including drug benefits, provider price increases drove about 75% of spending growth — an average of $453 per person — when inflation is taken into account.