Recent news tells us the rate of increase in health care costs has slowed. That’s good news of course even though it has nothing to do with Obamacare, except perhaps the threats it poses for the future. The fact is we have seen this cycle before, generally when there is a great deal of attention focused on the issue; sometimes by employers and sometimes by government and politicians.
Is it different this time, let’s hope, but don’t hold your breath.
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I have read and heard this several times in the past few months, that is, that the rate of growth in health care spending has decreased. ( Dr. Elmendorf, head of the Congressional Budget Office has made note of it.) That is a good thing of course.
But:
Some of the likely reasons this is occuring are either temporary or not a good sign:
1. high unemployment:
2. large number of “young and healthy” seniors now entering medicare
3. more “new” jobs are low paying and without benefits
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Plus it is part of a cycle. Whenever the spotlight is on health care costs seem to mitigate temporarily.
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