NEW YORK, June 17, 2008

Study Predicts Ballooning Health Costs

Hospital-Building Boom And Cost Shifting From The Uninsured Are To Blame, Audit Finds

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     (CBS/AP)

(AP)  Employer health care costs are poised to rise almost 10 percent in 2008 - more than double the annual inflation rate - and nearly that much again in 2009, according to an industry report released Tuesday.

The study by PriceWaterhouseCoopers predicts that medical costs will increase 9.9 percent in 2008 and an additional 9.6 percent in 2009.

"Health care providers, insurers and employers will have to monitor medical costs carefully if we are to avoid a resurgence of the double-digit annual increases seen in the past," said Dr. David Chin, leader of the Health Research Institute at PriceWaterhouseCoopers.

The report identified two factors driving the increase:

  • A hospital building boom, as hospitals replace facilities and add private rooms and centers for outpatient treatment.
  • An increase in the expenses those with insurance are paying for those without. Cost-shifting from the uninsured, Medicare and Medicaid will account for nearly one in every five dollars spent by private insurers in 2009, according to the study, as the federal government underfunds public insurance programs and the number of people with private insurance continues to decrease.
One of the things employers are doing in response is increasing wellness, prevention and disease management programs, which they say not only keeps employees healthy but also raises productivity.

PriceWaterhouseCoopers surveyed more than 500 employers and health plans, with total coverage of more than 11 million people, for the report.

© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Add a Comment See all 115 Comments
by faith_in_w June 17, 2008 9:04 AM PDT
I like John McCains plan. It lets employers free from the yoke of employee ENTITLEMENTS such as health care. Employees are then FREE to shop for their own healthcare at their own expense.
Reply to this comment
by jumkey June 17, 2008 10:03 AM PDT
Look faith_in_w:

If you currently have employer paid health care it is COMPENSATION - get it? It was negotiated at the time of hiring. They aren''t "entitlements" any more than WAGES are.

So essentially McCain''s campaign promise (and one you agree with) is "vote for me and I''ll cut your pay".

Hmmm....unlike you I think I''ll vote for my self-interests, and those clearly aren''t represented by McCain
Reply to this comment
by harpoot June 17, 2008 10:12 AM PDT
"Employees are then FREE to shop for their own healthcare at their own expense."

Boy, that''s great! Take a pay cut effectively and then shop for health insurance with less money. What are you smoking faith?? Old tires?
Reply to this comment
by faith_in_w June 17, 2008 10:22 AM PDT
harpoot, who says I am an employee?
Reply to this comment
by jumkey June 17, 2008 10:40 AM PDT
A vote for McCain is a vote for a pay cut.

A vote for McCain is a vote for $10 per gallon gas.

A vote for McCain is a vote for a bigger house and a bigger car for faith_in_w.

A vote for McCain is a vote for your children to go hungry.

The choice is simple, direct and self-evident. faith_in_w is TELLING YOU WHAT TO EXPECT. MCCAIN IS GOING TO STICK HIS HAND IN YOUR POCKET AND TAKE YOUR WAGES AND GIVE THEM TO faith_in_w. For no reason other than that he CAN.

What are you going to do? Vote your own self-interest, not McCain''s and not Bush''s.
Reply to this comment
by singingrick June 17, 2008 11:05 AM PDT


Silly little Americans. Health care is only for rich people.


lol!



Reply to this comment
by singingrick June 17, 2008 11:07 AM PDT



Meanwhile all the other major industrialized nations have free health care.

Instead of having health care in the U.S., we invade Iraq and spend three trillion dollars trying to fix what we''ve broken there.

Thanks Republicans.




Reply to this comment
by singingrick June 17, 2008 11:10 AM PDT



Republican Logic:


Free health care paid for by U.S. taxpayers for all Iraqis is a very good idea.

Free or government subsidized health care here at home is a very bad idea.

lol!




Reply to this comment
by lovemy3boys June 17, 2008 11:36 AM PDT
Personally, I don''t like Obama or McCain that well. We''re screwed either way...
Reply to this comment
by rf35 June 17, 2008 11:44 AM PDT
Universal health care is starting to look better and better. I just hope Obama can get the job done. Sill happy you voted out the only candidate in the race with an actual plan...for anything?
Reply to this comment
by jumkey June 17, 2008 11:47 AM PDT
Personally, I don''''t like Obama or McCain that well. We''''re screwed either way...

Posted by lovemy3boys

Well with an attitude like that I''m sure you''re right.
Reply to this comment
by feedback3-2009 June 17, 2008 11:57 AM PDT
Wow, what a revelation, a prediction of rising health costs.
Reply to this comment
by nolalou June 17, 2008 12:00 PM PDT
I like Obama''s plan, which lets you keep your current insurance if you want, and offers help paying premiums for those with lower incomes, or you can buy into a government plan instead.

Here''s the entire proposal:
http://www.barackobama.com/issues/healthcare/
Reply to this comment
by antoniof123 June 17, 2008 12:07 PM PDT
faith_in_w

Does the w stand for war or the chimp trying to run the country.
Reply to this comment
by hypnotoad72 June 17, 2008 12:32 PM PDT
How can one predict what has clearly been happening for many years?

How will they monitor costs? Maybe if they went to Disneyland instead of Honolulu for their annual meetings... :)
Reply to this comment
by mswolfestock June 17, 2008 12:41 PM PDT
We as a country will never get anywhere with the health care crisis as long as there is no incentive for people to choose to stay healthy.

It''s the cigarette smokers and the 300 pounders who are driving health care costs through the ceiling. They are the ones who should pay for their care.

Folks who lose weight, stay tobacco-free, and keep their cholesterol controlled should get their health care at a reduced cost.

If you cannot control yourself to step away from the pastry cart, if you are too weak-willed to quit smoking, then YOU should have to pay every penny for your heart attacks, strokes, lung cancer, etc.

In the end, choosing to be healthy is the most cost efficient for both individuals and the country.
Reply to this comment
by sharncedar June 17, 2008 12:44 PM PDT
One thing I can predict is that health care costs will stop rising so fast. Just like I could predict that housing prices would stop rising so quickly in 2005.

Because, idiots, the faster something rises the quicker it hits its top price, and becomes overpriced, and then cannot rise anymore. so health care will stop increasing rapidly soon, it is going through a boom right now so you cannot project these rates of increase indefinitely into the future. The writer of this article should be jailed for ignorance of basic math and price cycles.

For example, if the price of milk goes up in my supermarket by 10 cents on Tuesday, that rate of increase is $36 a year. now some idiot media type may panic, projecting milk at $40 a gallon by the end of the year. It''s bad math. There is a short-term rate of increase, which can vary widely, and a long-term rate, which is absolutely governed by the income levels of the people in the society. they cannot pay more money than they have, the price cannot rise above a certain level. with health care, short-term would be 2 decades of fast growth, unsustainable, long-term you will find is pretty much a small and reasonable increase commeasurate with income growth.
Reply to this comment
by roachcrusher June 17, 2008 12:53 PM PDT
Get insurance companies out of health care. That''s why we have one of worst health care systems around. Cut out the middleman.
Reply to this comment
by jon2012-2009 June 17, 2008 12:59 PM PDT
No one has mentioned the FACT that a LARGE portion of the uninsured that are driving the price of health care up are ILLEGALS and thanks to the democrats and Obama''''s plans we will have plenty more of them around to help keep prices rising.

Posted by tmcattack at 12:31 PM : Jun 17, 200

No one has mentioned it because maybe it isn''t true? All right, let''s say they impact health care. Give us numbers.
Reply to this comment
by jon2012-2009 June 17, 2008 1:01 PM PDT
Get insurance companies out of health care. That''''s why we have one of worst health care systems around. Cut out the middleman.

Posted by Roachcrusher at 12:53 PM : Jun 17, 2008

I agree. It''s one step anyway.
Reply to this comment
by dinkydog1 June 17, 2008 1:04 PM PDT
No one has mentioned the FACT that a LARGE portion of the uninsured that are driving the price of health care up are ILLEGALS. Posted by tmcattack at 12:31 PM : Jun 17, 2008

............

Think about it, if and American worker worked for the same low wages the illegal did he would be eligable for medicaid (free health care)for him and his family, pay no taxes and get a $3000 earned income check from the IRS every year, get food stamps, be eligable for Social Security, disability, workers comp, unemployment insurance and on and on. So tell me, how are illegals causing the health care crisis?

Reply to this comment
by bobnjersey June 17, 2008 1:08 PM PDT
New Jersey, Florida, California, and Pennsylvania are the most expensive places to get sick. New Jersey hospitals charges were an average 415% of costs.

- Drug companies: The world%u2019s 13 largest alone recorded $62 billion in profits in 2004.

- HMOs: The 20 largest in the U.S. made $10.8 billion in profits in the most recent fiscal year.

- Hospitals: Aggregate profits for U.S. hospitals reached a record $26.3 billion in 2004 %u2013 and profits have risen substantially the past few years even as the number of hospitals and hospital beds has been shrinking.

- Executive compensation: 12 top HMO executives pocketed $222.6 million in direct compensation in the most recent fiscal year. The top 12 drug company executives collected $192.7 million for the same period.

- Mergers: $1.15 trillion has been consumed by pharmaceutical, hospital, HMO, medical device, and biotech corporate mergers and acquisitions in the past 12 years.

http://www.calnurse.org/media-center/press-releases/2005/december/page.jsp?itemID=27509278


Here%u2019s some more disturbing comparisons between charges (to you) %u2026 and true costs.

http://www.ahd.com/sample_outpatient.html
Reply to this comment
by faith_in_w June 17, 2008 1:13 PM PDT
tmcattack, how would farms and companies function without hiring illegal aliens. Due to the liberal employment laws of this country, industry is forced to go underground to seek relief.
Reply to this comment
by dinkydog1 June 17, 2008 1:35 PM PDT
Simple market economics which unfortunately you don''''t seem to understand.

Posted by tmcattack at 01:14 PM : Jun 17, 2008
+

............

I think I do, ecnomically you pay either way. Either through higher prices for higher wages without illegals or lower wages for Americans as illegals drive down wages. I just don''t think Illegals are a major factor in health care cost.
Reply to this comment
by thebruce384 June 17, 2008 2:02 PM PDT
Quickest solution to the US health cost crisis is for you obese americans (approx 99.9999% of the US population) to lose weight
Not only would it lessen your health problems, you would be bale to fit your carcasses into vehicles smaller than 12 gallon to the mile SUVs etc and reduce your gas usage and gas costs
Reply to this comment
by thebruce384 June 17, 2008 2:05 PM PDT
Also how would you like to wait for months sometimes to see a Doctor. If all this free medical treatment is so great why do all who can afford it come to this country for treatment.


--------------------------------------------------------------------------------

Posted by dmw1167 at 01:50 PM : Jun 17, 2008"

Amusing comment coming from a moron who like 99% of americans has never travelled outside his trailer park let alone outside the USA
You don''t have to wait for months to see a doctor in any of the Western european countries that have NAtional Health Care systems

Whilst in the US ,it''s common practice for 10 year olds to die from a lack of dental care
Reply to this comment
by mbcsmith June 17, 2008 2:21 PM PDT
Whilst in the US ,it''''s common practice for 10 year olds to die from a lack of dental care



--------------------------------------------------------------------------------

Posted by thebruce384 at 02:05 PM : Jun 17, 2008

Please provide your statistics and source for this claim. ''common practice"? I think you''ve worn out your DVD of sicko.
Reply to this comment
by mbcsmith June 17, 2008 2:22 PM PDT
jumkey, if health Insurance is compensation why isn''''t it taxed.


--------------------------------------------------------------------------------

Posted by dmw1167 at 01:53 PM : Jun 17, 2008


Because that''s the way the tax code is written.
Reply to this comment
by ken1dall June 17, 2008 2:30 PM PDT
As the saying goes: "If you think healthcare is expensive now, wait until its free".
Reply to this comment
by ken1dall June 17, 2008 2:35 PM PDT
The next time you need your sorry as**s saved call thebruce384 instead of the USA. You 3rd world pinko
Reply to this comment
by wogerwabbit June 17, 2008 2:44 PM PDT
10%? Mine has gone up 20% a year for the past 2 years. Somebody wasted their money on that study.
Reply to this comment
by bobnjersey June 17, 2008 2:45 PM PDT
[Quickest solution to the US health cost crisis is for you obese americans (approx 99.9999% of the US population) to lose weight. Not only would it lessen your health problems, you would be bale to fit your carcasses into vehicles smaller than 12 gallon to the mile SUVs etc and reduce your gas usage and gas costs]
[Posted by thebruce384 at 02:02 PM : Jun 17, 2008]

how do you expect the continuation of indiscriminate consumption to carry on if we can''t eat and spend indiscriminately?

this wouldn''t be good for the economy ... and so we''ve been told to keep living beyond our means and w/ wanton disregard for our own well being ... and especially the well being of others.
Reply to this comment
by lovegetpeace June 17, 2008 2:48 PM PDT
Folks,
America ranks #42 worst in Infant Mortality Rate in the modern world:
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2091rank.html

America ranks #47 in Life Expectancy Rate in the modern world:
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2102rank.html

America got the #1 highest healthcare cost (twice (2X) 2nd place Sweden): http://dll.umaine.edu/ble/U.S.%20HCweb.pdf

What good is our advanced/high-tech medical system if Americans cannot afford it?

There is a new industry now of flying you to India for all your operation/surgery. See http://www.cbsnews.com/stories/2006/10/18/health/webmd/main2104425.shtml
Reply to this comment
by lovegetpeace June 17, 2008 2:51 PM PDT
America got the only Market (PROFIT) Based Healthcare system in the World. My point is that Capitalism got no heart meaning profit determines whether they do care about your health or not. America Market based Healthcare system is the only system in the world that prices itself out (eliminate) of the Market.
Reply to this comment
by lovegetpeace June 17, 2008 2:55 PM PDT
Hey tmcattack,
What good is the best Healthcare in the world when only the Rich and those few with Health Insurance like our Congressman are the only one that can benefit. The remaining Americans without insurance or under-insured are counted as dead if they do not travel to Canada, Mexico or India.
Reply to this comment
by actornaught June 17, 2008 2:56 PM PDT
Posted by lovegetpeace at 02:48 PM : Jun 17, 2008

Legit stats. This "free market" patchwork system of health insurances is ridiculous. Healthcare with a profit motive is ridiculous.

Maybe someday the US will move into the ''80''s, with the rest of the world...
Reply to this comment
by lovegetpeace June 17, 2008 2:58 PM PDT
HealthCare only works under the Socialist model as the Capitalism model got no heart by design.
Reply to this comment
by lovegetpeace June 17, 2008 3:00 PM PDT
Under Capitalism, HealthCare got no Competition. Nobody shops around for the cheapest Hospital or Clinic when they need it.
Reply to this comment
by actornaught June 17, 2008 3:01 PM PDT
Even if i was inclined to believe all the scare talk about how EVERY OTHER modern country handles its healthcare, I''m sure we can do it better in the US. As long as the ''cons don''t hobble it to the point of failure.

When you have trouble with health insurance, thank the republicans...
Reply to this comment
by lovegetpeace June 17, 2008 3:04 PM PDT
Folks,
Americans fear a Government-based HealthCare system like in many countries around the world will limit their Choices.

However, of those few Americans today with Insurance, 81% are with HMOs, POSs or PPOs which mean you are limited to which doctors, clinics and hospitals you can visit. Where in the hell is our freedom to choose?

Even if we had that freedom to choose, when you have an emergency, you visit the Closes Clinic, Doctors or Hospitals and not the best one in your state.
Reply to this comment
by bobnjersey June 17, 2008 3:07 PM PDT
[Under Capitalism, HealthCare got no Competition. Nobody shops around for the cheapest Hospital or Clinic when they need it.]
[Posted by lovegetpeace at 03:00 PM : Jun 17, 2008]

not only is this true ... but the next time the doctor orders up a procedure (like say an ultrasound or some type of radiology scan like an mri, or an upper gi) ask the doctor how much that test will cost ... he won''t know.

then go out in the waiting room and ask the receptionist for that doctor how much that test is ... he/she won''t know.

then go to the facility where the test is performed and ask the receptionist there how much the test costs ... he/she might know ... but my experience has been that this person won''t know either.

then ask the technician who performs the procedure how much it costs ... they won''t know.

Reply to this comment
by actornaught June 17, 2008 3:09 PM PDT
...those who chose not to get insurance...
Posted by tmcattack at 03:03 PM : Jun 17, 2008.

Excellent point. Instead, your employer pays part of your premium (how much is their contribution?), and your paying part of the premium, and then your out-of-pocket, and then those that voluntarily have no insurance, etc etc etc.

Solution? Everybody pays for it in TAXES. Yes, i said taxes, and it''s likely you''ll pay less than all those bills you pay now.

It''s time.
Reply to this comment
by actornaught June 17, 2008 3:11 PM PDT
DONT FORGET, your current employer contribution to your health insurance could instead be your next substantial raise.
Reply to this comment
by lovegetpeace June 17, 2008 3:15 PM PDT
Hey tmcattack,
1) to pay the costs for all of those who don''''t pay, i.e. illegals, those who chose not to get insurance, etc.
Answer: We all have the choice to get private health insurance or thru our employer but its too expensive - OUCH your wallet.

2) Now also lets see about life expectancy and infant mortality.
Answer: Nobody take their sick children to doctor because its OUCH your wallet.

3) how about these facts adding to the rankings, Americans are unheathly, they don''''t eat right, they don''''t exercise, they do hazardous activities (like driving), they take drugs, they have dangerous jobs, they fight in wars, etc.
Answer: All the other countries with better ranking than America have similar if not same lifestyles if not worst. It is to the benefit of Capitalism to have more obesity (as one example) than to have none - profit goes thru the roof. It is to the benefit of our Pharmaceutical companies to have you on medicine all year round rather than to cure you with one drug.

4) All those things effect those rating however they have nothing to do with the quality of health care.
Answer:
As the other countries with better ranking than America, I would in a heartbeat take a lower quality of health care to have a much better life expectancy and infant mortality rate.
Reply to this comment
by actornaught June 17, 2008 3:20 PM PDT
...LOVE IT OR LEAVE IT...
Posted by tmcattack at 03:15 PM : Jun 17, 2008

Now that''s just being a jerk. Sad ''con strategy, when you can''t win, just shout out ''em down.

Think again about the forces at play to keep the profit motive in healthcare. You''re being a good little tool...
Reply to this comment
by lovegetpeace June 17, 2008 3:31 PM PDT
Hey tmcattack,
1) if it SOOOO MUCH better in Mexico, Canada and India, feel free to move there, if they will let you. They have stricter immigration laws and might not let you in.
Answer: Check out on the internet how easy it is to immigrate especially to Canada since they wish to populate the country.

2) Additionally why do you think people from all those countries want to move from there to here if our system is so bad.
Answer: The perception from American''s Movies and News is great. Once they are here, good luck with your paycheck (reality check).

3) We have large populations from all those countries and more coming to the US for a better way of life and all you can do is bad mouth it.
Answer: My statistic are from the U.S. CIA - not me.

4) We are and should be a free market society.
Answer: Protect your wallet.

5) If the politicians would leave it alone and quit over regulating everything, especially the democrats,
Answer: Good luck with the NeoCons'' policies.

6) you seem to know a lot about how great other countries are and yet somehow I doubt you have ever been there. I have traveled the world and have seen whats out there.
Answer: I came here from another country and perception and reality are 2 different things with regards to the Healthcare system. I am glad the Democratic Party will fix this expensive Market (PROFIT) based Healthcare system with your help.
Reply to this comment
by lovegetpeace June 17, 2008 3:33 PM PDT
It is to the benefits of our Pharmaceutical companies to have you on medicine treatments all year round rather than to cure you with one pill.
Reply to this comment
by lovegetpeace June 17, 2008 3:37 PM PDT
American''s Healthcare system leaves Americans at a Competitive Disadvantage with the rest of the world having Government run Healthcare systems.
Reply to this comment
by lovegetpeace June 17, 2008 3:45 PM PDT
Hey tmcattack,
1) insurance and medical costs go WAY down IF you don''''t have pay the costs for all those who don''''t pay. Affordable health care and insurance because we don''''t have to pay the costs of others, what a novel idea.
Answer: These ''others'' cannot afford it because the ''POOL'' for insurance companies is decreasing. The biggest cost is the Emergency Room where they treat whomever comes in with or without insurance.

2) no other country in the world has the same life style americans have....lack of power, clean water, no luxuries, even in countries like Italy, Greece, Germany, England, France, etc.
Answer: Sounds like you live in a Gated Community. Give me the city where you live and I will give you the neighborhood I want you to visit once in your life.

3) the lifestyle the many americans live shorten our lives and the lives of infants, i.e. drug use by expantant mothers, obesity, etc. so don''''t just assume those numbers mean that if you live a healthy life style in the USA you won''''t out live those from other countries.
Answer: Thank you for admitting how ''bad this free market society'' really is.
Reply to this comment
by lovegetpeace June 17, 2008 3:47 PM PDT
American''''s Healthcare system leaves Americans at a Competitive Disadvantage with the rest of the world having Government run Healthcare systems. Just ask the car manufacturer General Motors Corporation.
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