Tuesday, June 22, 2010

qotd: Clarification of HCAN report on insurance rates

The following is to clarify a legitimate concern of one of the qotd subscribers.

From the 6/22/10 message:

21% - general inflation
39% - medical inflation
72% - increase in private insurers' payments to health care providers
90% & 97% - premium increases for individual and family health plans

General inflation and medical inflation refer to increased prices. Payments to providers and insurance premium increases refer to increased prices modified by increased volume and intensity of services.

Though the numbers should not be compared on a single scale, the principles are still the same as stated earlier. The rate of medical inflation (prices) has continued to increase in excess of the rate of general inflation. Insurance premiums have continued to increase in excess of the payments (prices x services) to providers.

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