Health Care Cost In Washington Grew 13% Over 4 Years: OIG

OLYMPIA, WA — Health care costs in Washington grew 13 percent between 2016 and 2019, according to a new analysis from the state's Office of the Insurance Commissioner (OIG). That means health care costs well outpaced inflation, as the consumer price index only rose about 7 percent over the same time frame.

“For years, we’ve seen the cost of health care grow, especially with advances in technology and prescription drugs,” said Insurance Commissioner Mike Kreidler in a news release. “These increases have impacted how much people pay for their health insurance. We need to get a handle on what’s driving costs if we want to address the issue and help lower health insurance premiums. This report helps us take a much closer look at what’s behind health care cost increases and understand whether it’s the use of health care services or their price that is contributing more to the growth in costs.”

According to the OIG's findings, by 2019 the average Washingtonian spent $422 per month at the pharmacy and on medical treatment, up from $373 in 2016. The 13 percent overall increase was driven by an 11.5 increase in medical costs, and 19.2 percent increase in the cost of prescription drugs.

The largest cost drivers included pharmacies, acute inpatient care, outpatient emergency care, outpatient non-emergency care and ambulances.

To better understand what drove medical prices to increase so drastically, the OIG says it will next be studying changes in prescription drug costs, mental health data, and funding for hospitals and ambulances.

“Washington state has been hugely successful at improving access to health insurance for people who need coverage, and it’s something I’m very proud of,” Kreidler said. “But now we need to seriously tackle affordability. Understanding what’s behind the often paralyzing costs is the first step toward a solution.”

Though a 13 percent increase in the cost of health care is nothing to shrug at, it's actually significantly less than the nationwide increase in health care spending. According to an analysis from the Health Care Cost Institute, Americans as a whole saw their health care spending increase 21.8 percent over the same period of time. Nationwide, prescription drug spending increased 28.4 percent during that time frame, and outpatient care spending spiked 31.4 percent.

>> Learn more from the Office of the Insurance Commissioner.