Impact of inflation on U.S. healthcare - statistics & facts
Overall inflation in the United States peaked in mid-2022, compared to the previous year consumer price index (CPI) increased by only three percent in June 2023. During the same period, the costs of medical care increased by 0.1 percent. Historically, healthcare costs, including medical services, insurance, prescription drugs, and medical equipment, have risen faster than other costs in the overall economy. In 2022, this trend reversed and for the first time in over three decades, the overall inflation rate increased at a faster rate than medical care costs. For how long this trend will continue remains to be seen. In October 2023, the Bureau of Labor Statistics (BLS) reported a 34 percent decline in health insurance CPI. The BLS health insurance index measures the profits of insurers after paying for medical services, this is the main reason why the decline in the health insurance index is not reflected in the actual premium paid by Americans.
