Data recently released by Standard & Poor's Indices reveals the average per capita cost of healthcare services covered under private insurance and Medicare rose 5.75 percent in the 12 months ending September 2011.
That is slightly higher than in August, and marks the fifth consecutive month the growth rate of insurance costs has gone up. Combining data from several healthcare and health insurance indices shows the costs covered by commercial insurance are growing faster than before, while Medicare claims expenses grew at a slower rate. This indicates it is the cost of services covered by commercial insurance that is driving the overall growth.
"Medicare is an entitlement and continues despite the economy. Commercial insurance members are subject to being employed for coverage. So, members can either accelerate or defer non-emergency care for months when there is an economic impact that results in the potential for losing insurance," said index committee chairman David Blitzer.
He noted the differences may also be caused by other factors, including the way Medicare payment updates are established by law while commercial insurers must negotiate acceptable pricing. Differences in the populations covered may also contribute. Blitzer indicated Medicare covers more individuals with chronic conditions, whereas commercial insurance deals with more acute cases. As the cost and utilization of services for these needs change, the expense of each type of coverage may be affected.
