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Healthcare Inflation Slows for U.S. Employers

The cost of medical care for people in employer-sponsored health plans rose at an annual rate of 3.8 percent in the first quarter of 2011, according to the Thomson Reuters Healthcare Spending Index for Private Insurance.

A year earlier, in the period ending with the first quarter of 2010, the rate was 6.3 percent.

The index, which measures historical and current levels of per capita healthcare spending for people with employer-sponsored coverage, provides a benchmark measure of healthcare inflation.

It also tracks key components such as hospital care, physician services, and prescription drugs. Hospital costs showed the steepest growth in the Q1 2011 report, increasing 5.9 percent annually. Physician costs reflected a 3.2 percent year-over-year hike, and drug costs increased 0.3 percent.

Index estimates are based on the Thomson Reuters MarketScan® databases, a repository of healthcare claims for in patient and out patient services.

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Source: Thomson Reuters, July 21, 2011


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IMPORTANT NOTICE: This information is designed to provide accurate and authoritative information on the business of healthcare. It is distributed with the understanding that Healthcare Intelligence Network is not engaged in rendering legal advice. If legal advice is required, the services of a competent professional should be retained.



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