Health Care Spending in the United States

health care is a large and growing part of the US economy in the United States health care spending has increased as a share of the economy in most years over the past five decades we spend more on health care as a share of our economy than other countries recently health care spending growth has slowed although evidence suggests that some of the slowdown is likely related to the Great Recession analysts don't agree on how big a factor this has been but the recession is likely not the most story in fact may occasionally broke which has also been at near historic lows has not been historically related to recession there are three other possible reasons for the recent slowdown in spending the Affordable Care Act might have lowered spending and spurred health care providers to focus more on efficiency the dissemination of electronic health records might also have allowed for more efficient use of health care or health spending growth might have M naturally perhaps because of a lack of big innovations in health care rapidly increasing health spending will be a particularly tough problem for the federal government as the combination of an aging population and rising health spending per person means significant budgetary pressures ahead if recent slow growth continues then by 2040 federal health spending will be less than 7% of GDP but if spending goes back to its historical pattern then by 2040 federal health spending will be much larger about 9% of GDP meaning that the government will have to either raise taxes or cut spending elsewhere to pay for it


  1. Everybody outside of the Healthcare Industry agrees that Third Party Payers is the whole Health Care out-of-control spending problem in a nutshell.

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