Children's health spend on rise

The increase in spending on children's health care is outpacing that of any other age group, according to a new report from the Health Care Cost Institute (HCCI), an independent entity based in Washington, DC, that maintains a centralized database of public- and private-sector health care spending and use trends.

Using datasets from 3 billion private health insurance claims from 3 national health plans, the HCCI determined that per capita spending on children's health increased to $2,123 in 2010, an 18.6% increase from 2007.

Almost one-third (31.4%) of total health care spending on children in 2010 was spent on children aged younger than 3 years, even though this segment comprised only 17% of the covered child population.

The increased spending on children's health care occurred despite a 29% decline in the use of branded drugs and a 14% increase in the use of generic drugs. Use of central nervous system medications such as antidepressants, antianxiety drugs, and drugs used to treat attention-deficit/hyperactivity disorder jumped by 10%.

The acceleration of spending on children occurred mostly as a result of rising prices paid for outpatient-visit facility services, which increased at more than twice the rate of inpatient-admission facility services. On average, $855 was spent on professional services per child, a 16.5% increase from 2007.

Health Care Cost Institute. Children's Health Care Spending Report: 2007-2010. Washington, DC: Health Care Cost Institute; 2012.