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EMBARGOED UNTIL MAY 21, 2012. NOT FOR DISTRIBUTIONHealth Care Cost and Utilization Report: 2010May 2012May 2012 www.healthcostinstitute.org www.healthcostinstitute.orgCopyright 2012 Health Care Cost

It seeks to provide an annual report on the national and state trends in health care cost in the US. CCI analyses national and state data sources for key cost components, including the Patient-Centered Outcomes Research Institute (PC ORI) and the National Institute for Health Care Management (NIC HMC). The CCI estimates that total national health spending rose 9.1%, from 3.5 trillion in 2010 to 3.8 trillion in 2011, or an 18.4% increase in nominal dollars. However, health care cost growth slowed and health care costs represented less than 1% of the national economy growth at the end of 2011. The cost growth trends were driven in part by decreases in overall costs of health insurance for employers and employees combined, but overall medical costs rose at a much higher pace (17.2%) across the board between 2010 and 2011. In response to the rapidly growing cost growth, the Department of Health and Human Services set goals to reduce cost growth by 9.2% of aggregate national health care spending over the next 10 years. CCI projects that total national health care spending will increase 11.3% in nominal dollars from 2011 to 2013, followed by an increase of 6% per annum in nominal dollars over the next decade. CCI also reports cost information for eight states that report to the Department of Health and Human Services (OH HHS) and three states that report to the Department of Labor (DOL). CCI presents the data on this report as part of an online repository. The data are downloadable in Excel format, providing an analysis for each state and a county-level analysis for the three main types of cost components included in the report — employee-employer, health insurance, and overall medical cost growth. The Health Care Cost and Utilization Report: 2010 CCI estimates health insurance costs will grow at a faster rate than overall medical cost growth for all states and for the five main types of cost components. The estimated health insurance cost growth rate was 22.4% in 2011 with a 10-year average of 13.5%. Health insurance cost growth rate in the following years was also expected to be a few percentage points lower, with average annual growth of 11.6% in 2012 and 10.5% in 2013.

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