27 September 2012

"less" != "more, but only a little more"

Washington Post | Sarah Kliff | Health insurance costs grew slowly for two years. Now, they’re speeding up.

Spending for private health insurance surged by 4.6 percent in 2011, according to a report from the Health Care Cost Institute. That growth rate is faster than the rest of the economy and higher than the previous year, which had 3.8 percent growth.

Average spending on a private insurance patient rose to $4,547 in 2011, compared with $4,349 in 2010. That statistic suggests that a recent downturn in health-care spending may have been a temporary product of the recession rather than a more permanent change, as some health-care economists have hoped.
Oh fer chrissake.

Can't you tell the difference between a quantity and it's first and it's second derivatives? There was no "downturn." At least not according to the Post's own data. There was slower growth than it had been previously. No downturn. Nothing got cheaper, it just got less expensive than it was anticipated to.

1 comment:

  1. No, they can't. And that is why we can't have nice things.