Healthcare Spending May Be Slowed For Good, Which Changes Everything

[DonViejo]

Health Care Spending Growth May Have Slowed Permanently — With Huge Implications For The Economy And Deficits

BRIAN BEUTLER MAY 7, 2013, 9:40 AM

Health care spending growth has famously slowed over the past five years, significantly enough that the Congressional Budget Office recently revised its projections of Medicare and Medicaid spending over the coming decade downward by hundreds of billions of dollars.

Now, research papers suggests the recent slowdown doesn’t just reflect temporary economic weakness, but also structural shifts in how health care is delivered and financed — possibly attributable to the Affordable Care Act — and thus might be a harbinger of a longer-term trend.

If they’re right, and the trend continues, it means workers can expect higher wages and the country’s projected medium term deficits are significantly overstated, which in turn suggests lawmakers’ continuing obsession with the current budget deficit, and deficits over the coming decade, are misguided.

The study by Harvard researchers, featured in the latest edition of Health Affairs, finds, like all studies of this nature, that the recession and weak economy contributed significantly to the spending growth slowdown. Less generous benefits, resulting in higher out-of-pocket costs, accounted for 20 percent of it. Faced with less generous coverage and less disposable income, people consumed fewer health services.

full article
http://tpmdc.talkingpointsmemo.com/2013/05/health-care-spending-growth-may-have-slowed-permanently----with-huge-implications-for-the-economy-an.php?ref=fpb

[ProSense]

1. This is good news, especially

"Health Care Spending Growth May Have Slowed Permanently — With Huge Implications For The Economy And"

...given this report:

Study: Obamacare May Reduce Premiums In New York
http://www.democraticunderground.com/10022804988

[Orrex]

2. What does this mean?

workers can expect higher wages and the country’s projected medium term deficits are significantly overstated.

Does that mean that workers can expect higher wages?

Or does it mean that higer wages and medium term deficits are overstated?

[Veilex]

20. In this case the word "and" is read as "Additionally" or "Also".

[Orrex]

22. Thanks!

Sack the editor!

[HiPointDem]

24. there's no reason to expect higher wages because health costs are stabilizing.

[Orrex]

25. I agree.

That's why I hoped for clarification.

[robinlynne]

26. This sounds sort of like the chained CPI. You cant afford the same food, so you buy chepaer food, so

the cost of food "goes down"....

[lindysalsagal]

28. It means Obama was right. We have to fix healthcare to fix the economy.

Thank god he has kept the act in tact long enough to show these results.

Great news. I hadn't heard this before.

[reformist2]

3. Health care is still way too expensive. Price controls are needed.

[L0oniX]

4. More and more people are opting to die.

[alterfurz]

11. "Death is the poor man's doctor" -- Irish saying

[robinlynne]

5. the last sentence says people cant afford health care any more, and so are not using it as much.

[BrotherIvan]

7. Yes, I am totally confused by this

People can't AFFORD healthcare so they aren't using it. And how on earth does this relate to higher wages?

[SoCalDem]

10. Here's how..

A whole bunch of 50-64 year olds will be "culled", never to live long enough to collect SS or to retire with what piddly pensions may be coming their way (for the lucky ones who even still had them)

Those "vacated" jobs will become available

[Le Taz Hot]

13. Well, between lack of health care and

eliminating Meals on Wheels, they're either going to sick us out or starve us out. Either way it saves them billions in food and health care costs. Happy days! Unless you're a Boomer, of course.

[Iliyah]

17. Meals on Wheels,

head start and cancer patient treatment and other programs being sliced and diced will get back the funding. Its a slow process of returning the funding since the GOPers want these programs to suffer which they are betting that it will insure them the congress and WH. Meanwhile, here in Cali, I don't believe we are affected that much from the cuts and seniors and the disabled who need Meals and Wheel services won't be denied because there are other alternatives such as churches and non-profit meal services. I'm with one group that serves the poor and take prepared meals to seniors, disabled.

Americans are coming together in helping to provide for the people who need it the most across the country. Not much is being covered because who likes positive news. That said, that is why it is important to get out and vote in 2014. Put in a party that give a damn, and to me, its the Democratic party. Yes, the Democratic party is far from perfect and yes some can totally piss ya off, but allowing the other crazy party to remain in power (House) will hurt America even more.

As to health care outrageous cost, especially rx, hopefully some will be curved. Money is the root of most evil, and the profit makers will fight tooth and nail which is exactly like what the NRA are doing. Vote candidates and politicians in that will hopefully change it. I know some are in sheep clothing but right now America is still a democracy, we the people have the POWER.

[Le Taz Hot]

23. It may or may not get back the funding

and Obama and the Democrats have every bit as much culpability as do the Republicans. The FFA and Defense budgets were restored. Funny MOW, & Head Start weren't. We saw what the priorities are right there.

I'm also in California and my 91-year-old aunt was told by the young man who delivers her MOW that they are running out of food and no, no one has come knocking on her door to help her out. Luckily, she has lots of family and friends to ensure she is provided for but what about people who don't have those resources? You think "Americans are coming together in helping to provide for the people who need it the most across the country?" Really? Because I see LOTS and LOTS of homeless and desperate people, many of them in their 60's and older, and I don't see "Americans coming together" to help them after they've fallen through the social safety net that BOTH PARTIES helped to gut.

And please, don't tell me about profit makers. Take a look at who Obama nominated as Secretary of Commerce.

The sooner we realize that it isn't about partisan politics but about the 1% and their Faithful Servants in Washington working for that 1% and not for the 99%, the sooner we can evolve out of this oligarchy hell hole.

[zeemike]

19. And we laughed at the notion of death panels.

And that notion is funny, because they don't need a death panel...they just use social Darwinism...those with the bucks live and those without die...real simple.
Get rid of those useless eaters and save the job creators...and their spawn.

[progressoid]

8. Exactly. n/t

[geek tragedy]

12. That is certainly part of it--what the article is saying is that other factors are at play, nt

[TheProgressive]

6. Middlemen...Moneychangers...

Until the health insurance industry, i.e the middlemen, are removed from
America's health care system ---> we are paying to much.

The insurers do nothing but take our premiums and pay providers and
pocket 20% for executive pay and stockholders.

[Fumesucker]

9. See? We didn't need death panels after all

People are choosing to die all on their own, no panels necessary.

[Iliyah]

18. People who can't afford

health insurance are not choosing to die. There are ER and Medicare and Medi-Cal (Medicaid). Death Panels are solely the product of the GOP party who don't give a shit about who lives or dies cause from their perspective you are on your own.

[Safetykitten]

14. And now for something like this article, fantasy based, here is Calvin Coolidge.

[L0oniX]

15. "workers can expect higher wages" LMFAO ...yea they can "expect" all they want.

[rurallib]

16. Got to come back and savor this

[LondonReign2]

21. Fun with statistics

What the study appears to show is that rate of increase in total health care spending has slowed, primarily because it has become more expensive.

On one hand, it is true that Americans as a whole over consume health care. Part of the reason for this is the health care system, where providers are paid on a per procedure basis (i.e., more tests = more profit) and also fear not giving patients every possible procedure lest they be sued; part of it is because patients with health care have become conditioned to run to the doctor and emergency room for conditions that don't warrant it. We do, as a society, need to became more efficient users of health care if we want to see costs drop.

However, the headline findings alone, that health care costs have slowed, is deceiving if the main reason for that is people have been priced out of the system. Actual health cost cost increase from 2005 through this year (2013 estimated) have been: 8.5%, 9.0%, 8.0%, 8.0%, 8.0%, 8.0%, 6.8%, 7.0%. Even if you see a barely declining trend there, the rates of increase far outstrip both inflation and wage increases.

[bvar22]

27. Health Care Spending has slowed for the same reason...

... that spending at WalMart has slowed.

[GeorgeGist]

29. OFFS!

Less generous benefits, resulting in higher out-of-pocket costs, accounted for 20 percent of it. Faced with less generous coverage and less disposable income, people consumed fewer health services.