The health care cost curve is bending


Reports have indicated that while health care costs are growing at a slower pace than in years past, much of that slowdown has been a result of the recent recession. Peter Orszag makes the case that “a growing body of evidence suggests the deceleration is driven by more than a temporarily weak economy.”

“There is good reason to think that lower growth will persist even after the economy turns around. For instance, costs have decelerated more for Medicare than for employer-sponsored insurance, suggesting that the shift isn’t entirely caused by the slow economy… health-system leaders are anticipating two significant shifts over the next eight years: away from fee-for- service payments and toward clinical-decision support. Both of these changes promise to improve value and slow cost growth.”