Article

Health care spending growth: how different is the United States from the rest of the OECD?

Congressional Budget Office, Washington, DC, USA.
Health Affairs (Impact Factor: 4.64). 01/2007; 26(1):154-61. DOI: 10.1377/hlthaff.26.1.154
Source: PubMed

ABSTRACT This paper compares the long-term (1970-2002) rates of real growth in health spending per capita in the United States and a group of high-income countries in the Organization for Economic Cooperation and Development (OECD). Real health spending growth is decomposed into population aging, overall economic growth, and excess growth. Although rates of aging and overall economic growth were similar, annual excess growth was much higher in the United States (2.0 percent) versus the OECD countries studied (1.1 percent). That difference, which is of an economically important magnitude, suggests that country-specific institutional factors might contribute to long-term health spending trends.

0 Bookmarks
 · 
72 Views
  • [Show abstract] [Hide abstract]
    ABSTRACT: The aims of this paper are to explore the experiences of budget holders within the English National Health Service (NHS), in their attempts to implement programmes of disinvestment, and to consider factors which influence the success (or otherwise) of this activity. Between 24 January and 15 March 2011 semi-structured, telephone interviews were conducted with representatives of 12 Primary Care Trusts in England. Interviews focussed on: understanding of the term "disinvestment"; current activities, and perceived determinants of successful disinvestment decision making and implementation. Data were organised into themes according to standard qualitative data coding practices. Findings indicate that experiences of disinvestment are varied and that organisations are currently adopting a range of approaches. There are a number of apparently influential determinants of disinvestment which relate to both health system features and organisational characteristics. According to the experiences of the interviewees, many of the easier disinvestment options have now been taken and more ambitious plans, which require wider engagement and more thorough project management, will be required in the future. Findings from the research suggest that issues around understanding and usage of disinvestment terminology should be addressed and that a more in-depth and ethnographic research agenda will be of most value in moving forward both the theory and practice of disinvestment. This research suggests that, in the English NHS at least, there is a disjuncture between common usage of the term "disinvestment" and the way that it has previously been understood by the wider research community. In addition to this, the research also highlights a broader range of potential determinants of disinvestment than are considered in the extant literature.
    Journal of Health Organisation and Management 01/2013; 27(6):762-80.
  • [Show abstract] [Hide abstract]
    ABSTRACT: Health care costs represent a large and growing component of business and consumer expenditures in the US. Medical inflation represents these costs, and it differs from aggregate inflation and other market factors with respect to its rate of growth, statistical properties and the extent to which it can be hedged by households and firms. Using multiple model specifications for the 25-year period from 1985 to 2009, we find medical inflation is robustly priced in the cross-section of US stock returns. It commands a risk premium of between 31 and 51 basis points per annum per unit change in beta. Medical inflation is also unique in that it represents the only inflationary component that robustly explains the cross-section of stock returns in this manner and is not subsumed by other common factors in the literature. These results quantify the health care industry’s unique and significant role in the US economy and stock market, further rationalizing the substantial attention this industry receives.
    Journal of Economics and Finance · 0.42 Impact Factor
  • [Show abstract] [Hide abstract]
    ABSTRACT: The USA has exceptional levels of health-care expenditure, but growth has slowed dramatically in recent years, amidst major efforts to close the coverage gap with other countries of the Organisation for Economic Co-operation and Development (OECD). We reviewed expenditure trends and key policies since 2000 in the USA and five other high-spending OECD countries. Higher health-sector prices explain much of the difference between the USA and other high-spending countries, and price dynamics are largely responsible for the slowdown in expenditure growth. Other high-spending countries did not face the same coverage challenges, and could draw from a broader set of policies to keep expenditure under control, but expenditure growth was similar to the USA. Tightening Medicare and Medicaid price controls on plans and providers, and leveraging the scale of the public programmes to increase efficiency in financing and care delivery, might prevent a future economic recovery from offsetting the slowdown in health sector prices and expenditure growth.
    Lancet. 06/2014;