Healthcare spending growth has hit a record low point following the passage of the Patient Protection and Affordable Care Act's, according to a recent White House report.
Since the law's passage in 2010, real per-capita healthcare spending has grown at an estimated average rate of 1.3 percent, the lowest rate on record for any three-year period, according to the report. Healthcare price inflation has also reached its lowest rate in 50 years, with personal consumption expenditure price indices showing inflation running at only 1 percent year-over-year, the lowest rate seen since January 1962.
Furthermore, according to the report, the CBO has reduced its projections of Medicare and Medicaid spending in 2020 by $147 billion since August 2010, primarily because of the recent spending slowdown.
Although the reasons behind the deceleration in spending aren't entirely clear, its duration indicates it's more than just a result of the 2007 to 2009 recession. The report states the PPACA has contributed by reducing Medicare overpayments to private insurers and providers, as well as reducing hospital readmission rates and increasing provider participation in payment models that promote high-quality, integrated care.
For more information, read the full report here.
More Articles on Healthcare Spending:
National Health Spending, Price Growth Remained Low in September
Study: Employer-Sponsored Health Insurance Spending Growth at Historical Lows
The Frail Anatomy of the U.S. Healthcare System