Employer Healthcare Costs Outpace U.S. Healthcare Spending in 2009

Another article detailing the rise in healthcare costs particularly for small business and individuals. It’s interesting to note that inflation for 2009 was actually negative, yet healthcare costs continued to rise. What’s the deal?

HFMA

Average healthcare costs for U.S. employers rose 7.3 percent in 2009, up from 6.1 percent in 2008, according to a study by Thomson Reuters. Overall U.S. healthcare spending (including Medicare, Medicaid, and other payers) grew at a more modest 4.8 percent in 2009, according to National Health Expenditures data from the Centers for Medicare & Medicaid Services Office of the Actuary. The U.S. inflation rate was negative in 2009.

Not surprisingly, smaller employers were hit the hardest. Among small employers (less than 5,000 employees), healthcare costs increased 9.8 percent in 2009, up from 5 percent in 2008. Medium-sized employers (5,000 to 50,000 employees) saw cost increases accelerate from 6.5 percent in 2008 to 10 percent in 2009. Among large companies (more than 50,000 employees) costs rose 5 percent in 2009, down from 5.8 percent in 2008.

The study analyzed insurance claims data for 144 small, medium-sized, and large companies that provided health benefits to 9.5 million individuals from 2007 to 2009.

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