Obamacare still driving up medical inflation

LA Times:  US healthcare spending grew 5.3% last year to $3 trillion, another sign that a historic slowdown in medical inflation may be ending, a new federal report shows.

The massive expansion of insurance coverage under the health law and rapid growth in specialty drug spending fueled the uptick in medical costs, officials said. Annual spending growth was 3.7%, on average, during the last five years.

Experts aren't predicting a return to double-digit increases in medical spending. But the latest trend underscores how difficult it will be for policymakers, employers and insurers to control healthcare costs going forward.The country spent $9,523 per person on healthcare in 2014, including Medicare,Medicaid and private health insurance. That's far higher than what other developed countries pay, and healthcare spending now accounts for 17.5% of the U.S. economy.

The upswing could further squeeze American workers. Health insurance premiums and deductibles keep taking a bigger bite of their paychecks, as employers shift more healthcare costs to employees.

"Two main factors were responsible for health spending growth in 2014 -- coverage expansion associated with the Affordable Care Act and faster growth in prescription drug spending," said Anne B. Martin, an economist at the Centers for Medicare and Medicaid Services.

That would be a 5% hit to public secor costs. Add in ghe additional 3% for lower pension returns.  Add in he increrased minimum weager in  C alifornia, and the usual underfunding and California public sector will cost us abut 7% more i  2016.  Thank you Kanosians, you have put yourself out of a job, lay-offs starting soon.  We will start by laying off ther Bezerkeley Economics department.