Benefits March 6, 2001

Healthcare Tech Carries High Price Tag

March 6, 2001 (PLANSPONSOR.com) - Medical technology could account for up to a third of the projected increases in US health care spending over the next five years, according to new research released Tuesday.
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The report, conducted by Project HOPE’s Center for Health Affairs suggests that while medical advances have improved health care and saved lives, they may be disproportionately adding to the overall increase in health care costs. 

Personal care expenditures are expected to rise by 6-7% each year through 2005, according to the report – with new technologies representing 25-33% of that increase.

The report notes that:

  • Technologies that may save costs for some people often increase overall spending
  • Volume of usage as well as price determines the overall cost of technology
  • The willingness of various systems (insurance, Medicare, etc.) to pay for certain procedures has in impact on the cost and utilization of new technologies

The report was released by the Health Insurance Association of America (HIAA) and the Blue Cross Blue Shield Association (BCBSA). 

You can access the 65-page report at http://membership.hiaa.org/pdfs/FinalReport.pdf

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