In other words, the inflationary aspects of a product or service must be based on a unit cost, not an overall cost. In the context of the examples you cite in medical care, the only way to accuretely assess inflationary trends is to look at the specific costs associated with those treatments and not the overall cost of insuring people. How much does a hip replacement cost today vs. in 1970? How about treatments for high blood pressure, or diabetes? If we're using these things more frequently today than in 1970, then we should expect to see health care expenditures rise.
According to BCBS their are other reasons for high costs...
Why should we be concerned with people who don't have health insurance? When you don't have health insurance, you can delay getting medical care until you can afford it. The delay in medical care increases the risk of complications and the advancement of health problems. Therefore, when a person without health insurance finally seeks medical care, the costs are normally greater. The uninsured person has no health insurance to pay for the medical care nor can the uninsured person afford to pay for the medical care. As a result, cost shifting occurs. Cost shifting means that the facility or professional shift the cost of the care or transfer it to other patients with health insurance or to those patients who can afford to pay for medical care. Cost shifting increases the cost of all medical care, including the care you and your family need. For example, a hospital increases costs to cover the unpaid costs for the uninsured. When the cost of medical care increases, this impacts how much we pay under your Service Benefit Plan coverage. Because the Service Benefit Plan is an experienced rated plan (your premiums are based on the amount of care used by all members), when we pay more in benefits, you pay more in premiums. In fact, everyone with health insurance ends up paying more.
So as less people and employers pay insurance premiums, those who do pay will pay more.