The era of volatile swings and double-digit growth in employer medical costs appears to be ending. Instead, the New Health Economy is settling into a new normal characterized by more attenuated fluctuations and a single-digit trend.
Still, medical cost trend has hovered between 6 and 7 percent for several years and health spending continues to outpace the economy. Even this new normal is not sustainable. Future reductions in cost trend will likely require health organizations and businesses to tackle the price of services along with the rate of utilization