Health Spending Projections Through 2015: Changes On The Horizon

Abstract

Growth in national health spending is projected to slow in 2005 to 7.4 percent, from a peak of 9.1 percent in 2002. Private health insurance premiums are projected to slow to 6.6 percent in 2005, with a rebound expected in 2007. The introduction of Medicare Part D drug coverage in 2006 produces a dramatic shift in spending across payers but has little net effect on aggregate spending growth. Health spending is expected to consistently outpace gross domestic product (GDP) over the coming decade, accounting for 20 percent of GDP by 2015.

N-of-1 Trials of Expensive Biological Therapies<subtitle>A Third Way?</subtitle>

“…Prescription drug costs continue to increase faster than the overall rate of health care inflation, 22 and biopharmaceutical agents are responsible for an increasing proportion of these costs. All known methods of pharmaceutical cost containment, including the exclusion of entire drug classes, patient cost sharing, and "payment for results," have limitations.…”

Effects Of Childhood Obesity On Hospital Care And Costs, 1999–2005

“…Obesity-related hospitalizations cost Medicaid $118.1 million in 2005, up from $53.6 million in 2001-a 120 percent increase. Indeed, just as growth in the elderly population has contributed to increases in health care costs, 30 increasing obesity among children appears to be driving increases in Medicaid spending. Given the increasing burden of obesity-associated hospitalizations, our findings suggest that additional federal support of prevention programs could reduce obesity treatment costs borne by federal and state governments.…”

Giving Teeth to Comparative-Effectiveness Research — The Oregon Experience

“…As of 2005, U.S. health spending had already reached $2 trillion, or 16 percent of GDP. 6,7 Although other high-income nations also face upward pressures on national health spending as a result of aging populations and advances in medical science, the U.S. stands alone in having both the most spending per person and rapid rates of growth over the past two decades. 8 As shown in Exhibit 2, the U.S. spends almost twice as much on health care per person as any other country, and a far greater share of GDP.…”