Average Life Insurance Policy In 1970 – The United States spent $8,402 per capita on health care in 2010. Health care costs consume an increasing share of economic activity over time. The United States spent $2.6 trillion on health care in 2010. The population distribution is $8,402 per capita (Figure 1). This 2.6 trillion US dollars amounts to 17.9 percent of the country’s total economic activity, known as gross domestic product or GDP. Health care spending has grown rapidly over time, but growth has slowed in recent years.
Health care is growing faster than many other sectors of the economy, so its share of economic activity has increased over time. For example, the education, transportation and agriculture sectors grow at rates close to the economy as a whole on average and over time, while health care does not. In 1970, total health care spending was $75 billion, or just $356 per person (Figure 1). In less than 40 years, those costs have risen to $2.6 trillion, or $8,402 per person. As a result, the share of economic activity focused on health increased from 7.2% in 1970 to 17.9% in 2010, but this level has remained unchanged since 2009. By 2020, the Centers for Medicare and Medicaid Services (CMS) estimates that health care spending will be nearly one-fifth of GDP (19.8).1
Average Life Insurance Policy In 1970
For each of the past ten years, health care spending has outpaced economic growth. Over the past 40 years, average growth in health care costs has outpaced overall economic growth by 1.1 to 3.0 percentage points (Figure 2). Since 1970, per capita health care spending has grown at an average annual rate of 8.2%, or 2.4 percentage points faster than nominal GDP. The persistence of this trend suggests a systematic disparity between health care and other sectors of the economy whose economic growth rates are generally more in line with the general economy. In 2011-2020, the average annual growth of health expenditure per capita (5.3%) will be about 1.2 percentage points higher than GDP growth (3.9%), with a small difference between 2011 and the 2020. 2 Average annual growth of national health expenditure per capita the rate of expenditure has decreased over the decades from 11.8% in the 1970s to 5.6% in 2000-2010.
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After years of growth, the rate of growth in national health spending has been declining since 2002. Since 2002, growth in national spending has been 9.5% over the previous year, while annual growth in spending has fallen to less than half that amount. – 3.9% in 2010 – the same amount as 3.8% in 2009 (Figure 3). CMS indicates that these recent rates are lower than other years in the 51-year history of the National Health Expenditure Accounts.3 CMS attributes this adjustment to “unusually slow growth in – utilization and intensity of the service.” The US recession, which officially lasted from December 2007 to June 2009, affected service use as people lost jobs, lost insurance, and were reluctant to spend on medical care. About sharing the cost of your insurance or you can’t afford it. According to CMS, the decline in health care spending caused by this recession occurred more rapidly than in previous recessions, where the effects often lagged, with the largest annual decline in 2008 (+ 4.7%), in 2009 (+3.8%), and in 2010. (+3.9%). ). An example of the economic impact on health care utilization, or physician visits by privately insured individuals, can be found at http://healthreform./notes-on-health-insurance-and-reform/2011/ november/the- economy and medical care.aspx.4
The United States spends more on health care than any other developed country. Figure 4 shows health care expenditure per capita in 2009 US dollars for countries above the per capita national income of the Organization for Economic Co-operation and Development (OECD). According to the OECD, US health care spending per capita in 2009 was $7,598.5 This is 48% higher than the next highest spending country (Switzerland) and 90% higher than most from the other countries that we will consider. It is too much. global competitors. As a share of GDP, US health care spending exceeds that of other industrialized countries by at least 5 percentage points (not shown).6 Despite relatively high spending, the US does not does not seem to be doing well in health. benchmarks compared to other developed countries.7 Recent studies have found that US health care costs are higher than those of other countries due to higher prices, more readily available technology, and obesity rather than higher incomes , a larger population and an aging population. increase the supply or use of hospitals and doctors.8
A small number of people account for a large proportion of expenditure in any given year. In 2009, nearly half of all health care expenditures were spent on treating just 5% of the population, including those with $17,402 or more in health care costs (Figure 5). 9 Less than a quarter of health care expenditure (21.8%) is spent. 951 for the treatment of 1% of the population, with total health care costs of more than $51 in 2009. Disease onset is unpredictable and treatment is technology and time intensive, resulting in a highly concentrated distribution of health care costs.
Health care costs vary according to factors such as age and gender. Average health care expenditure per capita increased with age, but per capita expenditure for children and youth (age 24 and under) was about the same in 2009 (Figure 6). Adults age 65 and older have the highest health care costs, with an average per capita cost of $9,744 in 2009. Average costs for women are higher than for men ($4,635 vs $3,559, respectively).
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The majority of health care costs are spent on care provided by hospitals and doctors. Health care costs cover a wide range of health-related goods and services, from medical care and prescription drugs to dental services and the purchase of medical equipment. Figure 7 shows the expenditure on health care in 2010 according to the type of expenditure. Spending on medical care and physician services ($1,329.5 billion combined) accounts for more than half (51%) of health care spending. Prescription drug spending ($259.1 billion) accounts for only 10% of total health care spending, but much attention has been paid to its rapid growth (a 114% increase since 2000, compared with 88% for hospitals and doctor/clinic services). However, the average cost increase in 2010 over 2009 was less for prescription drugs (1.2%) than for hospitals (4.9%) or physician/clinic services (2.5%).
The relative contribution of different sources of funding to private healthcare and total public expenditure has changed significantly in recent decades. Figure 8 shows that for most services, the share of Medicare and Medicaid spending has increased (these programs were not enacted until 1965; note that by January 1970, the -all but 2 states were covered by Medicaid), while the share of patients increased. – Out-of-pocket costs. The share of private health insurance increased for doctor and clinic services and for the retail sale of prescription drugs, but decreased for nursing care. The share of physician services and retail costs of prescription drugs has decreased. Figure 9 shows how the distribution of funding sources for total national health expenditure has changed over time, with the share of private health insurance, Medicare and Medicaid increasing and out-of-pocket spending decreases. Most source stocks have been relatively stable in recent years.
The annual percentage increase in out-of-pocket funding sources decreased in 2010, but the cumulative increase since 2000 was less than that in out-of-pocket spending for Medicare, Medicaid, and private health insurance. Of the major sources of national health spending, only out-of-pocket spending (which includes direct consumer spending on all health goods and services excluding health insurance premiums private health) increased more in 2010 than in 2009 (1.8% vs 0.2%). ) (Figure 10). CMS attributes this increase in cost sharing in 2010 to higher cost sharing requirements in some employer plans, consumers switching to plans with lower premiums but deductibles and/or copays higher, and lack of health insurance coverage.10 However, since 2000, the cumulative increase in out-of-pocket costs has increased, the growth is lower than other sources of financing (Figure 11) .
Several figures in this primer show cumulative changes in private health insurance or health insurance premiums (Figures 11, 15, and 20). These cumulative increases may vary by number because different years are used, data sources are different, and what is being measured is different. Figure 11 shows private health insurance from the HHS National Health Expenditure Data, which includes private and individual employer health insurance premiums, the health insurance portion of the accidents, and net costs of private insurance (including administrative agencies) from various sources. expenses, increases in reserves, interest, dividends, commission taxes, gains and losses). Figure 15 uses data from four major families from the annual employer survey of private and public employers by the Kaiser Family Foundation and Credentials for Health Research and Education. Figure 20 uses a family of four
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