Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Health Insurance

How much do we really spend on health care?

Your article was successfully shared with the contacts you provided.

It comes as no surprise that we in the U.S. spend substantially more on health care than any other developed nation. Still, the cold, hard numbers — as shown in a recent study put out by the Kaiser Family Foundation — are shocking. The significant spending gap, first measured in 1970, swelled in 2008 to 91 percent more than other developed countries around the world.

A brief history of numbers:

  • When first measured in 1970, U.S. health care costs per capita were 58 percent higher than other wealthy countries, including Canada, the Netherlands, Switzerland, the United Kingdom and Japan
  • By 1980, the gap had shrunk to 51 percent
  • Just ten years later, in 1990, costs had soared to 86 percent higher
  • The gap shrank slightly, to 84 percent, between 1990 and 2000, before climbing to 91 percent in 2008

This timeline is complimented by data showing how health care costs have devoured our national GDP: in 1970, the U.S. spent 7 percent of its Gross Domestic Product on health care, 37 percent more than other developed countries. By 2008, this number had risen to 16 percent, 58 percent higher than average.

So, what do we do with these numbers? Study authors suggest: “This growing gap between health spending in the U.S. and that of other developed countries may encourage policymakers to look more closely at what people in the U.S. are getting for their far higher and faster growing spending on health care.”

Judging from ASJ’s recent Health Insurance Market Study, many agents agree that a closer look is needed. When asked whether you supported the new federal health care laws, 51 percent of you said yes — although just 3 percent wanted to keep the laws in their current form.

Looking at the numbers, it’s difficult to deny that reform is needed. Looking at the Affordable Care Act, it’s difficult to deny that there are some substantial holes. How would you fix things? Drop us a line at [email protected] and let us know which direction you think reform should take.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.