Study: HC Costs for Insurers Increasing Faster than for Medicare

For the 12-month period ending in August, the average per-capita cost of health care services covered by commercial health insurance plans, which include self-funded employer plans, climbed 8.66%. That compares with an average increase of 5.08% for patients covered by the traditional Medicare program, according to S&P Healthcare Indices, which Standard & Poor’s Corp. developed in consultation with Health Index Advisors, a joint Aon Hewitt Inc. and Milliman Inc. venture.

The biggest difference in cost increases between patients covered by Medicare and commercial health care plans were for hospital services. In that same 12-month measuring period, hospital costs for patients enrolled in commercial health care plans rose an average of 9.66%, nearly double the 4.48% increase for Medicare patients.