http://www.healthcaredive.com/news/4-forces-that-will-influence-medical-cost-trends-in-2017/421162/

The healthcare industry is in a transformational period. The rising use of retail clinics, MACRA, population health efforts and the Medicare Part B demonstration are but a few examples of disruptive conversations being had in board rooms. Yet, all of these discussions are underscored by the one topic underlying most business conversations: the almighty dollar.

There’s been plenty of digital ink given this year to the costs surrounding the industry. Just last week, a new Kaiser Family Foundation report outlined how the cost for the most popular ACA plan – the silver plan – is expected to rise on average 10-11% next year. Healthcare costs are generally expected to increase each year but, for context, the average silver plan increased an average of about 5% the previous year, according to the report.

However, a new PricewaterhouseCoopers’ (PwC) report stated while health prices are increasing, they are being tempered by the demand for value. PwC’s Health Research Institute (HRI) projects the medical cost trend – the projected percentage increase in the cost to treat patients from one year to the next – won’t increase or decrease next year but will stay the same as 2016: a 6.5% growth rate for 2017.

The report shows there’s a push and pull between healthcare services utilization and narrow networks focusing on value that could shift the medical cost growth rate in future years. “When medical growth outpaces general inflation, a flat trend is not good enough,” the report states.

“As a result, 2017 will be a tough balancing act for the health industry,” the report states, adding, “Healthcare organizations must simultaneously increase access to consumer friendly services while decreasing unit cost. Employers, worried that this current trend is at an inflection point that could turn back up, will demand more value from the health industry.”

HRI highlighted four factors that will influence the 2017 medical cost trend.