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SPOTLIGHT: AHA to WellPoint CEO: Premium increases 'exceed growth' in healthcare costs

In a letter sent to WellPoint President and CEO Angela Braly on Tuesday, American Hospital Association President and CEO Rich Umbdenstock took issue with Braly's statement that provider consolidation was primary reason for increasing healthcare premiums. "Recent national data suggests that rising utilization and cost increases in labor, medical technologies and other supplies are driving up hospital costs, not consolidation," wrote Umbdenstock. He goes on to say that premium increases, in fact, are "exceeding the growth in underlying healthcare costs." View the letter

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Well that's funny... it seems to me that everyone is either taking a pay cut or having their salaries frozen. This has been the case for 2 years now. How is it that the cost of labor is driving the increase in the cost of health care? Of course, there have also been layoffs, which further reduce the cost of labor. AHA's claim seems to lack logic. Also, study after study has shown that providers are investing in extremely expensive technology that is not necessary or well-utilized. Perhaps AHA should issue a position statement on the purchasing of unnecessary technology. Perhaps governments should start implementing and rigorously enforcing Certificate of Need statutes. There are ways of addressing what is wrong with the way hospitals are run and curbing their ability to drive up the cost of care.

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