Healthcare Spending Growth Rate Slowing: PwC

A PwC Health Research Institute analysis projects that the healthcare spending growth rate for 2016 will be 6.5%, down from the 6.8% in 2015. The report identifies three factors that “deflate” the medical cost trend in 2016: the looming Affordable Care Act “Cadillac” tax accelerates cost shifts, virtual health (remote monitoring and telehealth applications) becomes a valuable tool for primary care, and new health advisors steer consumers to more efficient healthcare. Two factors that “inflate” the medical cost trend are specialty drugs that fill the FDA pipeline and a new layer of expense due to cyber security protection.

The healthcare spending trajectory has leveled off but is not decreasing, according to the report. In fact, private healthcare spending continues to increase faster than the economy, despite steps taken to bend the cost curve.