Health Care Spending Accelerates

Spending on health care services grew 5.4% in the third quarter of 2014 (July to September) compared to the same quarter in 2013. This is substantially higher than the 3.7% rate in the second quarter and the 3.9% rate in all of 2013, according to a report by the Quarterly Services Survey. Prescription drug prices rose 4.1%, up from 3.8% in September 2014. Year-over-year hospital prices grew 1.1% in October, which is the lowest reading since September 1998. Charles Roehrig, director of Altarum’s Center for Sustainable Health Spending said, “While it is too early for definitive conclusions, this may well represent the predicted ramping up in spending by the estimated 10 million people gaining coverage in early 2014 under the Affordable Care Act.”