U.S. Health Care Spending In An International Context Uwe E. Reinhardt, Peter S. Hussey and Gerard F. Anderson Journal of Health Affairs Volume 23, Issue.

Slides:



Advertisements
Similar presentations
Share of Hospital Cost Growth Explained by Various Factors Higher costs of caring are a bigger factor in spending growth than increased demand.
Advertisements

1 Improving the Tax Treatment of Health Insurance Katherine Baicker Professor of Health Economics Harvard School of Public Health.
"Of all the forms of inequality, injustice in health care is the most shocking and most inhumane" Martin Luther King Jr (March 25, 1966, National Convention.
What Is Long Term Care?. u Long Term Care is an ever changing array of services aimed at helping people with chronic conditions cope with limitations.
Teleconference 2 1.Guest speakers in May 2.Policy Brief Project The Employer and Health Insurance.
Many Medicaid Patients Could Face Higher Fees Under a Proposed Federal Policy The New York Times Robert Pear January 22, 2013
 The Patient Protection and Affordable Care Act : How will ACA Impact Small Business? Sponsors: St. Tammany Democratic Parish Executive Committee (DPEC)
FIFTY YEARS IN MEDICINE, : WHERE ARE WE HEADED NOW? John P. Geyman, M.D. 50 th Reunion, Class of 1960 UCSF School of Medicine.
Introduction to Healthcare and Public Health in the US
International Variations in Health Care Expenditure Todd Gilmer, PhD Professor of Health Policy and Economics Department of Family and Preventive Medicine.
The Affordable Care Act Reduces Premium Cost Growth and Increases Access to Affordable Care Before ACA, Small Employers Faced Many Obstacles to Covering.
Lecture 9 Tuesday, October 2 Healthcare and the Market.
Universal Healthcare for America By Catherine McKeller English 102, Section 5232.
Government and Health Care Roughly 15 cents of every dollar spent in US is on health care US health care spending equaled $5841 per person in 2002 Governments.
Administrative Cost in Health Care Nov. 18, 2009.
On Health Care and Women in the US Economics Perspective.
High-Income Medicare Recipients to Pay Surcharge By ROBERT PEAR Published: September 12, 2006
The US Healthcare System Impact on Equity, Efficiency and Effectiveness.
Infant Mortality, 1997 Deaths In First Year Of Life/1000 Live Births Source: OECD, 1999 & NCHS »6.0 »5.8 »5.3 »4.8 »4.0 »7.2 »0»0 »1»1 »2»2 »3»3 »4»4 »5»5.
The Affordable Care Act H.R.359  Healthcare was framed by republicans as gov’t takeover of healthcare. Too Late! The government’s already a majority stakeholder.
The U.S. health care system: Past and Present ECN 240: Intro.
The Patient Protection & Affordable Care Act United States Court of Appeals for the Sixth Circuit (2011)
Health Care We must address the crushing cost of health care. This is a cost that now causes a bankruptcy in America every thirty seconds. By the end of.
Health Care Reform Quynh Smith. Sources of Inefficiency in the Health Care Delivery System   We spend a substantial amount on high cost, low-value treatments.
Cost-Containment, Medical Technology and Access to Care: A Comparative Analysis of Health Policy in the United States, the United Kingdom And Canada Emily.
The Shame Of American Health Care Why We Don’t Get What We Paid For And How to Fix It.
Lukas Steinmann Mexico 10. June 2008 To your health: diagnosing the state of healthcare and the global private medical insurance industry.
Health System Overview 13. General Health System Facts National health insurance program (“Medicare”) Central Government sets insurance standards through.
RISK MANAGEMENT FOR ENTERPRISES AND INDIVIDUALS Chapter 18 Social Security.
Health Care Reform in America Facing Up:. President Obama and Healthcare Reform “Health care reform is no longer just a moral imperative, it’s a fiscal.
Exhibit ES-1. Synergistic Strategy: Potential Cumulative Savings Compared with Current Baseline Projection, 2013–2023 Total NHE Federal government State.
1 Note: Data on premium increases reflect the cost of health insurance premiums for a family of four. Source: Kaiser/HRET Survey of Employer-Sponsored.
Chapter 22 Health Care Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
Peterson-Kaiser Health System Tracker How has U.S. spending on healthcare changed over time?
MEDICAL CARE: COSTS OUT OF CONTROL? Chapter 7 Presented By Mary Young.
The Four Pillars of Retirement Security Social Security Pensions & Savings Earnings Health Insurance.
McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 20 Health Care.
Health Care Facts and Guiding Principles for Health Care Reform Public Employees Union, Local #1.
Natalie Brisighella. 1.Current System 2.Proposed Plan Details 3.Negative Consequences of Plan 4.Additional Arguments 5.Refutation of Proponents’ Arguments.
Some Choices Don’t Really Matter!. Public Support – Single Payer Polls from April, Kaiser Family Foundation 2 January, Grove Insight Opinion Research.
Chart 1.1: Total National Health Expenditures, 1980 – 2011 (1) Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released.
Health Care Cost and Quality Transparency How Better Tools and Data Can Empower Consumers.
Chartbook 2005 Trends in the Overall Health Care Market Chapter 1: Trends in the Overall Health Care Market.
ANNOUNCEMENTS 1.New Chapter on Finance is available at 2.Updated chapters on Healthcare and the Environment also available at 3.All.
Gerald Friedman Professor of Economics
National Center for Policy Analysis Making Ideas Change the World Solving America’s Health Care Crisis Presentation to The National Congress on Health.
Benefit Design in Health Care Reform Paul B. Ginsburg, Ph.D. Alliance for Health Reform, Congressional Health Care Reform Educational Project, October.
Single-payer Health Care By: Devon Bradley vermont-wants-to-bring-single-payer-to-america
The future of Medicare fee-for- service Mark E. Miller, Ph.D. Executive Director Medicare Payment Advisory Commission October 16, 2006.
The Future of Medicare Advantage The Heritage Foundation September 10, 2008 James C. Capretta Fellow, Ethics and Public Policy Center
International Health Policy Program -Thailand NHA TEAM International Health Policy Program Draft report presentation for external peer review October 7,
HEALTH REFORM IN THE 2004 ELECTION Candidates’ Health Policy Agendas Moderator : Jeanne Lambrew, George Washington University AcademyHealth National Health.
Health Care Reform in America. The Stats 47 million people in the US do not have health insurance 792,000 people in CO do not have insurance – 1/5 of.
Growth in prescription spending had slowed, but increased rapidly in 2014 and 2015 Average annual growth rate of prescription drug spending per capita.
Source: National Association of Health Underwriters Education Foundation State of U.S. Healthcare 1.
Introduction How Much Money does the United States Spend on Health Care? What Types of Government-Supported Health Insurance Are Available? What Types.
U.S. Health Care System – Jenny Lee INEKO, Michigan Law School Student June 14, 2004.
Health Reform: An Overview Unit 4 Seminar. The Decision The opinions spanned 193 pages, upholding the individual insurance mandate while reflecting a.
International evidence on medical spending Robert Lieberthal October 6, 2011.
International evidence on medical spending risk Robert Lieberthal August 9, 2011.
Peterson-Kaiser Health System Tracker What are the recent and forecasted trends in prescription drug spending?
The Big Healthcare Issues
Growth in prescription spending had slowed, but increased rapidly in 2014 and 2015
The U.S. Health Care System: An International Perspective
Health Care Reform in America
Out-of-pocket costs for Rx drugs are expected to increase, but will likely represent a smaller portion of overall Rx spending Percent of total Rx spending.
Moving mainstream: CDHP plans gain ground.
Trends in the Overall Health Care Market
Out-of-pocket Payment (billions) Private Health Insurance (billions)
How much is health spending expected to grow?
Presentation transcript:

U.S. Health Care Spending In An International Context Uwe E. Reinhardt, Peter S. Hussey and Gerard F. Anderson Journal of Health Affairs Volume 23, Issue 3, link to article Presented by George Manev September 22, 2005

The authors suggest several reasons as to why U.S. health spending continues to soar out of control: GDP per capita (the ability to pay) – “About 90% of the observed cross national variation in health spending across OECD countries in 2001 can be explained by GDP per capita.” Administrative costs – A study by Woolhandler, Campbell, and Himmelstein estimated that about 24% of total U.S. health spending ($294.3 billion) is attributed to administrative costs to insurers, employees, and the providers of healthcare. (vs. 17% in Canada) Competition for limited talent - Health professionals’ salaries are increasing to allow the field to compete with other industries relying on the same talent pool, such as law and finance. Market power - The supply side of the health system has greater market power than the demand side, allowing prices to soar above the levels of other countries with single-payer or multipayer systems. (i.e: The strong “single-buyer” market power of the Canadian provincial health plans or the multipayer system in Germany, which bargains collectively with the providers of healthcare sometimes within government-set overall health budgets)

Unwillingness to ration health care – “A country’s health care system – especially its research and development (R&D) infrastructure – continually gives society the option of purchasing, through healthcare, additional quality adjusted life years (QALYs) at increasingly higher prices. Unwillingness to ration health care – “A country’s health care system – especially its research and development (R&D) infrastructure – continually gives society the option of purchasing, through healthcare, additional quality adjusted life years (QALYs) at increasingly higher prices. Question: What should be the cutoff price for QALY, if any?

Health Care in the Macro Level and Conclusions Actuaries at the Centers for Medicare and Medicaid Services (CMS) report that the United States spent an estimated $1.5 trillion on health care in 2003 (or 14.9 percent of GDP). They project that by 2013 the U.S. will spent about 3.36 trillion on health care (or 18.4% of GDP) Actuaries at the Centers for Medicare and Medicaid Services (CMS) report that the United States spent an estimated $1.5 trillion on health care in 2003 (or 14.9 percent of GDP). They project that by 2013 the U.S. will spent about 3.36 trillion on health care (or 18.4% of GDP) The U.S. could easily allow spending to continue to grow more rapidly than GDP for a while. However, the authors are concerned that a trend such as this could price low-income Americans out of health care. If premiums grew at the rate of 10 percent per year for the next decade, as they have been for the past couple of years, Reinhardt and colleagues predict that typical family health coverage would absorb 42% of an annual wage of $50,000. The U.S. could easily allow spending to continue to grow more rapidly than GDP for a while. However, the authors are concerned that a trend such as this could price low-income Americans out of health care. If premiums grew at the rate of 10 percent per year for the next decade, as they have been for the past couple of years, Reinhardt and colleagues predict that typical family health coverage would absorb 42% of an annual wage of $50,000. Two potential outcomes are given by the authors to this problem. One is to develop a new method of financing health care that would spread costs more evenly across society. A second is to adhere to the multi-tier system now in place, in which a person’s health care experience would vary based on their income level. Under such a system, the authors note that affluent families would have a much better health care experience than those with less income. Two potential outcomes are given by the authors to this problem. One is to develop a new method of financing health care that would spread costs more evenly across society. A second is to adhere to the multi-tier system now in place, in which a person’s health care experience would vary based on their income level. Under such a system, the authors note that affluent families would have a much better health care experience than those with less income.