For 2014, PwC Projects Medical Cost Trend of 6.5%

health care
health care

Consultancy PwC expects medical costs to rise at only 6.5% in 2014, which would be down sharply from increases in recent years. It expects the both the economy and federal public policy will help drive these costs down. If PwC is right, one of the primary expense pressures on the middle class will lessen. This is particularly good news, as real wages have not moved higher in a decade.

The report says:

Defying historical patterns - and placing added tension on the health industry - medical inflation in 2014 will dip even lower than in 2013. Aggressive and creative steps by employers, new venues and models for delivering care, and elements of the Affordable Care Act (ACA) are expected to exert continued downward pressure on the health sector.

And as primary triggers:

Filed under: 24/7 Wall St. Wire, Healthcare