The S&P Healthcare Economic Composite Index indicates that the average per capita cost of healthcare services covered by commercial insurance and Medicare programs increased by 5.21% over the 12-months ending January 2012. This was a decline from the +5.30% annual growth rate posted for December 2011.

As measured by the S&P Healthcare Economic Commercial Index, healthcare costs covered by commercial insurance plans increased by 7.05% over the year ending January 2012, down from the +7.11% reported for December 2011. Growth rates in Medicare claim costs rose by 2.40%, as measured by the S&P Healthcare Economic Medicare Index, down from the +2.52% reported for December. The Professional Services Index's annual growth rate also decelerated from its +5.37% December 2011rate, increasing by 5.13% in January. The broad Hospital Index's annual growth rate increased slightly to 5.03% in January from its +4.99% December pace.

Looking at the narrower sub-indices, the Professional Services Medicare Index hit a two-year low of +3.32% in January 2012, down from +3.73% in December 2011. The Hospital Medicare annual growth rate increased in January at +1.56%, it was up from its +1.48% December level. The Professional Services Commercial Index decelerated to +6.02% in January from +6.15% in December; and the Hospital Commercial Index marginally decreased to +7.84% in January from +7.85% in the previous month.

"Healthcare costs' annual growth rates decelerated modestly in January," says David M. Blitzer, Chairman of the Index Committee at S&P Indices. "The fall and early winter of 2011 was highlighted by a general upward trend in healthcare costs, as measured by annual rates of change. This month's data, which was through January 2012, showed a modest deceleration in most types of healthcare costs, but not by enough to show any reversal of this trend. Over the past six months or so, annual rates of change in per capita healthcare costs were generally rising.

"In January, the Composite Index posted an annual rate of +5.21%, the Commercial Index +7.05% and the Medicare Index +2.40%. All three were down from their respective December 2011 annual growth rates, but are still above rates they posted in the summer and autumn months. A January deceleration was also seen in our Professional Services index; its annual rate of change moved down to +5.13% from +5.37% in December. The Hospital Index, on the other hand, moved up marginally to +5.03% from December's +4.99%.

"The Professional Services Medicare Index was the only one to hit a two-year low, with +3.32%.  It also showed the steepest deceleration, 0.41 percentage points, compared to December rates. The Hospital Medicare Index showed an increase in its growth rate in January, at +1.56%, up 0.08 percentage points from the last month.  It should be noted that this rate is still far and away the lowest among the nine indices we publish."