Last week I predicted small group health insurance premiums for year-end would average 7%. (Review Tip 513 HERE.)

According to the most recent Bureau of Labor Statistics news release (8/12, HERE), the overall consumer price index increased 5.4% over the last 12 months.

What does it mean if health care inflation is close to being on par with CPI?

I’ll answer that by referencing this feature from September’s Independent Business Association of Wisconsin (IBAW) newsletter (pg.3), entitled “A peek into the restaurant industry.”

'At Kurt’s Steakhouse, beef prices are up 47%; chicken is up 40% (breasts, but 100% for wings!); pork + 51%; cod +30% (if you can get it), etc. etc. If that’s not alarming enough, consider staffing is down even with increased wages.'

Another friend in the food service industry added to this story, telling me some of the largest suppliers have suspended deliveries as they can’t property staff their warehouses.

Then I learned about a manufacturing business – heavily reliant on steel – raising prices 22% this year alone.

Back to ‘modest’ health care inflation.

This is no time to be complacent. As part of the larger economy, we need to double-down on health care cost containment initiatives.