The January 26th issue of The Economist had a short article about growing healthcare costs in the US. It pointed out (referencing CMS as a source), that healthcare costs had increased 6.7% from 2005-2006, but that Medicare spending had increased 18.7% What these numbers reflect, (but the Economist article only implies), is that because Medicare Part D started in 2006, spending growth shifted from private spending (and Medicaid) to Medicare. Looking at the actual data shows this to be the case:
- Public sector healthcare spending increased 8.2% in 2006 compared to 2005; Greater than the 7.1% the previous year
- Private sector healthcare spending o increased 5.4% in 2006 compared to 2005; Less than the 6.1% the previous year
Looking closer at the data is even more interesting.…