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Medicare Payment Cuts Continue to Restrain Inflation
FRBSF Economic Letter (2016)
  • Jeffrey Clemens, University of California - San Diego
  • Joshua D. Gottlieb, University of British Columbia
  • Adam H Shapiro, Federal Reserve Bank of San Francisco
A steady downward trend in health-care services price inflation over the past decade has been a major factor holding down core inflation. Much of this downward trend reflects lower payments from public insurance programs. Looking ahead, current legislative guidelines imply considerable restraint on future public insurance payment growth. Therefore, overall health-care services price inflation is unlikely to rebound and appears likely to continue to be a drag on inflation.

Publication Date
May 9, 2016
Citation Information
Jeffrey Clemens, Joshua D. Gottlieb and Adam H Shapiro. "Medicare Payment Cuts Continue to Restrain Inflation" FRBSF Economic Letter Iss. 2016-15 (2016)
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