Health care spending on U.S. residents with private health insurance increased by 7.4% in 2005, in part because of increased spending on hospital and physician services, according to a study conducted by the Center for Studying Health System Change, the AP/Philadelphia Inquirer reports. In addition, the study finds that health care spending increased by 7.7% in the first quarter of 2006. The study also finds:

* Total spending on hospital services increased by 9% in 2005, compared with 8.5% in 2004;

* Spending on inpatient hospital services increased by 7.1% in 2005, compared with 5.3% in 2004, and spending on outpatient services by increased 10.4% in 2005, compared with 11.2% in 2005;

* Use of inpatient and outpatient hospital services increased by 4.5% in 2005, compared with 1.3% in 2004;

* Spending on physician services increased by 7.1% in 2005, compared with 6% in 2004, an indication of increased use of such services;

* Spending on home health care and ambulance services increased by 12% in 2005, compared with 6.3% in 2004; and

* Spending on prescription drugs increased by 4.9% in 2005, compared with 8.3% in 2004 and 18.4% in 1999.

According to HSC President Paul Ginsburg, the 7.4% rise in health care spending in 2005 marked the third consecutive year of increases of between 7% and 8%, a trend that could lead to larger increases in health insurance premium rates in the future (Agovino, AP/Philadelphia Inquirer, 10/3). Ginsburg said, “Health insurance will be less affordable to more and more people, especially low-to-moderate wage workers and their employers” in the event that the trend continues (Lopes, Washington Times, 10/3).