7 reasons for slower spending growth

NEJM researchers find the reasons behind the slowdown

  • Fewer blockbuster drugs

  • Slower growth in existing technologies

  • Higher out-of-pocket costs for members

  • Penalties for hospital-acquired conditions

  • Penalties for preventable readmissions

  • Accountable care

  • Bundled payment


According to the New England Journal of Medicine, last year healthcare spending rose only moderately for the third year in a row, increasing by 0.8% per person, slightly less than the rate of growth of gross domestic product per capita. This trend marks a departure from the previous five decades, and may be fueled in part by payment reforms contained within the Affordable Care Act.


Source: The New England Journal of Medicine, December 25, 2013