While private-sector health care market growth is predicted to continue to increase throughout next year and will most likely still grow more quickly than the rest of the American economy, it is expected to slow down according to a recent PricewaterhouseCoopers report.
The report has predicted that spending in the private-sector health care market will go up by roughly 6.5 percent in 2016, which will be down from the 6.8 percent increase in health care spending that is expected this year. Private-sector health care spending increased by 10 percent back in 2008. The report also revealed that health care spending accounts for around 17.4 percent of the U.S. economy and that health care spending will still be growing at a higher rate than the overall economy of the country.
The report predicts that two of the factors that will drive down spending include the Cadillac Tax, which is a tax on costly health plans that will be implemented in 2018, as well as the increased use of new health advisers and telehealth. Not to mention that more employers are offering high deductible plans and shifting the costs of health plans to consumers, which will most likely result in many individuals becoming more aware of health care expenses, thereby resulting in lower spending. Average deductibles have grown by $500 since 2009, during which the number of employers that have offered such plans have tripled.
The signs of slow down in Private-Sector health care market growth are not something that most experts are worried about. In fact, the projected slow down is considered good news by many since the medical cost trend is roughly double the rate of overall inflation. For more information about the private-sector health care market, be sure to contact us at The Benefits Store today.