Health Insurance Daily

Health Costs Leveling Off

How many times have you heard health care costs are rising at record rates? This is not the case according to an article in the Washington Times.

The Bureau of Labor Statistics reports health care costs rose 71/2 percent in 2004, well under the 11.4 percent rise in 2002.

The BLS also reports cost increases for employers for health insurance per employee per hour worked has slowed even more.

From March 2001 to March 2002, those costs rose 11 percent; from March 2002 to March 2004, it rose 9 percent each year. But from March 2004 to December 2004, it rose only 3 percent.

Politicians and political commentators always assume government must do something new and different if health-care costs are to be held to bearable increases.

But the evidence is that health-care costs are being held down by the marketplace, partly in response to health-care legislation passed in the last four years.

posted by Mike @ 2:25 PM