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2018 February

HCCI 2016 Healthcare Cost and Utilization Report

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The 2016 Health Care Cost and Utilization Report show that spending per privately insured person grew by 4.6 percent, faster than in previous years. Price increases were the primary driver.

Key Findings from this Report

  • Total spending per person is now growing at faster rates than prior years, with 4.6% growth in 2016 compared to. 4.1% growth in 2015, which followed 2 years of sub-3% growth from 2012 to 2014.
  • Spending growth in each year from 2012 to 2016 was almost entirely due to price increases. We saw particularly large increases in spending and price for administered drugs, emergency room (ER) visits, and surgical hospital admissions.
  • Utilization of most health care services remained unchanged or declined, both year-over-year and over the 2012-2016 period.
  • Consumer out-of-pocket (OOP) spending per person increased but grew more slowly than total spending. This difference in growth led to a decline in OOP spending as a share of total spending.

The report covers the period 2012 through 2016 and includes claims data from four national insurance companies: Aetna, Humana, Kaiser Permanente, and UnitedHealthcare.