Health care spending grew 9.9 percent in the first quarter 2014, the highest rate in decades. Growth was 5.6 percent increase at the end of last year.
Such an increase is significantly higher than expected and likely is due to the pent up demand released by the Affordable Care Act. The good news is people are getting care they need (and probably care they don’t need). I wonder how much of the spending is on “free” contraceptives … Just kidding. 😃
The bad news is that if this rate of spending continues (don’t forget millions have their coverage effective after January 1) ACA subsidy costs will soar and will also be reflected in 2015 premiums.
The problem insurers will have in setting 2015 premiums in the next month is a lack of credible claims experience. This must be an actuaries version of hell.
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