April 12, 2022
Altarum Senior Analyst Corwin Rhyan recently spoke with CNN’s Tami Luhby on why health care costs are not rising at rates consumers are experiencing in other areas.
“Gas prices have skyrocketed. Groceries and cars are more expensive. Housing costs are up. But health care charges? Not so much. While consumer prices are rising faster than they have in more than 40 years, health care inflation has remained rather muted,” writes Luhby.
“While the cost of gas and food that consumers pay can adjust quickly to national and global economic forces, health care operates differently – payment rates are typically set in advance and last a year,” she continues.
Rhyan adds, “There’s just not a lot of flexibility for those prices to change in the near term.” Read more: “Prices are soaring – but not for health care”
For more insights on this topic, Rhyan contributed to Altarum's monthly Health Sector Economic Indicators briefs which analyze the most recent data available on health sector spending, prices, employment, and utilization. The latest briefs are available here: https://altarum.org/publications