Healthcare Prices Growing More Slowly Than ?Core Consumer Prices,?

July 24, 2015

Bloomberg News (Tozzi, 7/24) reported that “the price of health care has grown more slowly than core consumer prices … over the past five years.” This has not happened since 1959, when record-keeping began. This milestone was pointed out by Goldman Sachs economist Alex Phillips who noted that “some of it is from government-dictated reductions in Medicare and Medicaid payments.” The lower prices are not as noticeable to consumers due to more insurance companies and employers moving people to high-deductible health plans.