Health care costs rise by most in 32 years

Health care costs rise by most in 32 years

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NEW YORK (CNNMoney) — Health care costs rose sharply in August.

Prices for medicine, doctor appointments and health insurance rose the most last month since 1984. The price increases come amid a broader debate about climbing health care costs and high premiums for Obamacare coverage.

A recent report by Kaiser/HRET Employer Health Benefits forecasts that the average family health care plan will cost $18,142, up 3.4 percent from 2015. That's faster than wage growth in America.

Medical care costs altogether rose 1 percent just in August from July, according to the Consumer Price Index, a report on price inflation from the U.S. Labor Department.

Premiums on the Obamacare exchanges are expected to rise by double-digits this year.

Some health insurers, such as Aetna, have recently announced they would pull out of the Obamacare exchanges, saying Obamacare patients have turned out to be sicker and costlier than expected.

With Baby Boomers growing older, the economy improving and medical prices climbing, health care spending will rise in coming years. (Photo: CNN Money)
With Baby Boomers growing older, the economy improving and medical prices climbing, health care spending will rise in coming years. (Photo: CNN Money)

Overall, workers are paying up more for deductibles. Over half of U.S. workers with single coverage health insurance plans pay a deductible of $1,000 or more, up from 31 percent of workers in 2011.

And the health care price increases come as inflation overall continues to be low. Consumer prices altogether rose 1.1 percent in August compared to a year ago.

— Tami Luhby contributed to this report

The-CNN-Wire ™ & © 2016 Cable News Network, Inc., a Time Warner Company. All rights reserved.

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