Inflation could spark higher health care costs


The news that national health expenditures rose a modest 4.4 percent in 1996 is not likely to be repeated, according to a new estimate by Milliman & Robertson. Though M&R does not foresee an immediate return to the days of double-digit increases, its 1997 — 2000 health spending forecast predicts a moderate rise, due mostly to slightly higher inflation. M&R's formula, based on inflation (as well as out-of-pocket payment trends and real personal income levels) allows that a 1-percent increase in the consumer price index translates into a 0.67 percent boost in health expenditures. Less predictable, says M&R, are legislative efforts to regulate managed care's cost-control strategies — efforts that M&R says could force expenditures significantly higher.

SOURCE: NATIONAL HEALTH EXPENDITURE FORECASTS 1997–2000, MILLIMAN & ROBERTSON INC., SEATTLE, 1998

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HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

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