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May/June 2003
 Tracking Health
Care Costs: Trends Stabilize But Remain High In 2002
Health care spending per privately
insured person increased 9.6 percent in 2002, a slight reduction
from the 10 percent increase in 2001. This is the first time in
five years that the spending trend did not accelerate.
Nonetheless, health care spending grew nearly four times faster
than the U.S. economy grew in 2002. Growth in hospital spending
accounted for the largest portion of the overall increase (51
percent) for the second straight year. Moreover, hospital price
inflation which accelerated significantly in 2002accounted
for a larger share of hospital spending growth in 2002 than in
2001. Premium increases accelerated again in 2003, despite
2002s slight deceleration of the overall spending trend.
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