This is the first in a six part series on health care. The top chart shows the total U.S. expeditures on health care for given years. The bottom chart shows how the increase in the cost of medical care in the U.S. compares to the increase in the overall consumer price index (CPI). As you can see on both an absolute and relative basis, health care costs have increased dramatically in the U.S. over the past few decades.
> Centers for Medicare & Medicaid Services, Office of the Actuary. National Health Expenditure Accounts - Historical, Table 1: National Health Expenditures Aggregate, Per Capita Amounts, Percent Distribution, and Average Annual Percent Growth, by Source of Funds: Selected Calendar Years 1960-2007.
> Centers for Medicare & Medicaid Services, Office of the Actuary. National Health Expenditure Accounts - Projected, Table 1: National Health Expenditures; Aggregate and Per Capita Amounts, Percent Distribution, and Average Annual Percent Growth, by Source of Funds: Calendar Years 2003-2018.
> CPI and medical care price increase data is from the Bureau of Labor Statistics (BLS). The BLS uses the term “medical care” instead of “health care.”
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While it is very telling to see the disparity in health care costs relative to CPI it would be just as interesting to understand the drivers behind it. Lawsuits…driving malpractice insurance? Govt regulation on new drugs? Drug and health care excesses? many uninsured patients stiffing the healthcare providers therefore costs need to increase more than CPI? others?
Comment by John Fontana — April 3, 2009 @ 6:03 am