BusinessHealth Reform

Health Care Inflation

1 Mins read

This graph is from Milliman, courtesy of Uwe Reinhardt, who provides this commentary:

This graph is from Milliman, courtesy of Uwe Reinhardt, who provides this commentary:

The estimated average cost of health spending from all sources for a typical privately insured American family more than doubled in the last decade, to $19,393 in 2011 from $8,414 in 2001. Over the decade, the index exhibited an average compound annual growth rate — widely known in the trade as C.A.G.R. — of 8.8 percent, although, in recent years, that rate has ranged between 7 and 8 percent.

Despite that recent abatement, the growth rate is still more than twice the rate at which total average employee compensation has grown, for all but the top executives among private employers. In recent years, the growth in employee compensation has hovered beneath 3 percent.

In other words, health care is chewing up employees’ paychecks like Pac-Man in the famous arcade game. And there is considerable empirical evidence that the employer’s ostensible contribution to the employee’s health-insurance premiums actually comes out of the employee’s take-home pay.

   

Related posts
Business

Extremely Important Organization Tips for Psychotherapists

3 Mins read
An organized office leads to more productivity and brings about a feeling of security and control that’s quite comforting for everyone connected…
Business

Essential Guidelines for Maximizing Medical Practice Revenue as Competition Swells

3 Mins read
Running a medical practice has presented a number of new challenges over the last year. There were some practices that were deemed…
BusinessHospital Administration

11 Crucial Hospital Management Tips

3 Mins read
Proper management is the primary key to success in any organization, and the same applies to the hospital management systems. The following…