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Drugs, insurance costs drive healthcare spending higher
Modern Healthcare

The latest report from private forecasters at the Altarum Institute shows healthcare spending surged to 18.2% of the gross domestic product in July, the second time it’s reached that high watermark this year.

Out-of-control spending on prescriptions drugs and the soaring cost of health insurance administration continue to be the two major drivers behind rising healthcare costs. Though small as a share of overall spending, fast-rising drug prices and higher insurance overhead have set the stage for healthcare to increase its share of the overall economy at the fastest clip since the onset of the Great Recession.