Working Americans are using less healthcare but paying more for it, study says
In a study published Tuesday,
The study found that healthcare spending for those with commercial insurance reached a new high of
-- Prescription drug spending rose by 27 percent, despite a flat or decreasing trend in generic drug prices and despite a decline in the use of brand-name prescription drugs.
-- The average price of surgery that required an overnight stay rose by nearly
-- Emergency room visits increased by 2 percent, while the price of an ER visit that did not require an overnight stay increased by 31 percent to
Consumers with workplace coverage may not realize it, but they will pay for these increases through higher premiums and reduced benefits, said
"Somebody has got to pay for this," Brennan said during a teleconference with reporters on Tuesday. "I think a lot of the discussion around rising premiums in recent years definitely implicates these price increases."
Brennan said he suspects that prices have increased as hospitals and physician practices have consolidated into larger systems, giving them greater leverage when negotiating rates with insurers.
The fact that the price of healthcare can rise while demand drops is a peculiarity of the industry, Brennan said.
"I'm not sure that common sense necessarily applies," he said, likening health spending to an inflated balloon.
"When you push in one part of the balloon," he said, "it tends to expand elsewhere."
___
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