Data released last week by Standard & Poor's indicates the average per capita cost of health care services covered by private insurance and Medicare programs rose 7.32 percent over 12 months ending in August.

Hospital and physician claims for patients covered under commercial health plans were the hardest hit, according to S&P, as claim costs associated with commercial health plans rose 8.66 percent, as measured by the S&P Healthcare Economic Commercial Index.

Medicare claim costs for services rendered by hospitals and physicians rose a more modest 5.08 percent.

The S&P Healthcare Economic Indices estimate the per capita change in revenues accrued each month by hospital and professional services facilities for services provided to patients covered under traditional Medicare and commercial health insurance programs in the U.S. The annual growth rates are determined by calculating a percent change of the 12-month moving averages of the index levels versus the same month of the prior year.

"Two caveats to these figures: first Medicare is subject to different regulatory and market effects than the Commercial Index," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "Second, these data, which are through August 2010, do not reflect any impact of the recently passed federal health care legislation. As the cost of healthcare is a daily topic of discussion, we expect many to use these indices to understand changes in healthcare costs for the insured population in the U.S., by both service provider and by benefits coverage."

The S&P Healthcare Economic Composite Index is a weighted average of the S&P Healthcare Economic Commercial Index and the S&P Healthcare Economic Medicare Index. Alternatively, it is a weighted average of the S&P Healthcare Economic Hospital Index and the S&P Healthcare Economic Professional Services Index, as each of these indices has the analogous Commercial and Medicare component.

The table below summarizes the year-over-year change in the S&P Healthcare Economic Indices for the 12-month period ending August 2010. With each monthly release, the index levels, including the 12 month moving averages, are recalculated for the full history of the indices, whenever there are revisions to an underlying data used in the models. The entire revised history, as well as full results for the underlying S&P Healthcare Economic Indices are available from Standard & Poor's as a subscription service.

S&P Healthcare Economic Indices (12-month moving average)

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S&P: Health costs rise 7.32 percent over 12 months

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