AHA report highlights real drivers of health care costs

Increased health care use and intensity of services have been the key drivers of health care spending growth as the U.S. population continues to age, with hospital price growth averaging just 2% annually from 2010 to the start of the COVID-19 pandemic, according to a report released today by the AHA. That contrasts with a 4.4% average annual increase in health insurance premiums since 2010. Among other findings, the report shows that hospitals’ expenses have increased dramatically due to the complexity of caring for patients with COVID-19, supply chain and labor shortages, contract temporary labor, and acquisition of personal protective equipment.