Consumer Price Index (CPI) data compiled by the Bureau of Labor Statistics reveals a troubling disconnect between overall inflation and the rising price of health care.
In a recent report, health care expert and TXEAHC board member Paul Keckley noted that since 1982 when the U.S. Bureau of Labor Statistics began recording monthly CPI price changes, food prices have increased by 232% and housing prices have increased by a whopping 304%.
But that’s nothing compared to health care prices.
During that same period, the price of medical products (including prescription drugs and over-the-counter medications) increased by 316%. Medical services increased by 515%. And hospital prices increased by a staggering 992%.
These numbers highlight a critical threat to our economy and pose an immediate challenge for employers and their employees but also for policymakers who must identify ways to keep skyrocketing health care prices from eroding broader economic gain along with access to affordable care.
For employers, who sponsor coverage for nearly half of the Texas population, the implications are clear: the current trajectory of health care expenses is unsustainable.
For policymakers, addressing the skyrocketing health care prices should be a top priority.