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Report: Health IT is Reducing the Medical Spending Growth Rate

June 12, 2015
by Gabriel Perna
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Healthcare information technologies are leading to a drop in medical inflation, according to a report from PricewaterhouseCoopers' (PwC) Health Research Institute.
The Health Research Institute projected that U.S. medical inflation will dip to 6.5 percent in 2016, which would cap a ten-year trend of slowing employer medical cost-trend growth. Of the three main reasons why the medical growth rate has slowed, the adoption of virtual care technologies, such as telemedicine and remote monitoring systems, was listed as one. They said these technologies are more convenient and efficient than traditional care. 
Researchers also said the growth of health advisers, who help steer consumers to more efficient care and the Affordable Care Act's "Cadillac tax" on high-priced plans are the other two reasons for the slowed medical growth rate in 2016. 
However, despite this, healthcare cost inflation will still outpace the economy. One of the reasons is because of the growth of cyber-security breaches in the industry, forcing healthcare companies and organizations to step up protection measures.

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