Does there exist an instrument or mechanism that can be used as a proxy for the price of healthcare and/or health insurance premiums? For example, suppose there exists a "Health Care Cost index", HCCI, that I'm currently long in for $10K. If in, say, a year's time, $10K of healthcare in today's dollars costs $12K, I would expect the value of the index to be $12K. If the unfathomable occurs and the costs of healthcare actually decrease I would similarly expect the index to lose value. Does the financial product I am describing exist?

I suppose one could, with enough data, computing machinery and data mining/statistical analysis determine a basket of instruments that might do this, but for a non-expert would definitely take a lot of effort...

1 Answer 1


The United States prepares a medical care cost index, which can be found at http://data.bls.gov/cgi-bin/srgate

The following series are valid: CUSR0000SAM (seasonally adjusted monthly), CUUR0000SAM (not seasonally adjusted monthly), and CUUS0000SAM (not seasonally adjusted semiannually)

I can't find a financial product which tracks this (or another) medical care cost index specifically, although many products are marketed to track the performance of the health care industry as a whole. Products in the latter category can track indexes such as the MSCI US Investable Market Health Care Index or the Dow Jones U.S. Health Care Index.

The industry's indexes' behavior may show poor correlation with a medical care costs index's behavior, however. For example, if medical care costs are stagnant, and if population increases, then one could expect (all other factors being equal) that the healthcare industry would be better off, while the costs index would be flat.

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