Transcript Economics: Basic Concepts

U.S. national
health spending,
1997
7/18/2015
Samuel L. Baker
[email protected]
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U.S. national health
spending in 1997




$1.092 trillion
$3925 per capita
The GDP in 1997 was $8.111
trillion,
so 13.5% of GDP was for health
spending.
7/18/2015
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National health
expenditure and GDP
Billions of dollars
9000
8000
GDP
7000
6000
5000
4000
3000
2000
1000
0
7/18/20151960
NHE
1965
1970
1975
1980
1985
1990
1995
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NHE % of GDP hasn’t
increased since 1993
Flat since 1993
14%
$8,000
12%
$7,000
10%
8%
$6,000
% of GDP
GDP $5,000
$4,000
6%
$3,000
4%
2%
7/18/2015
$9,000
NHE
Billions of dollars
Percent of GDP
16%
$2,000
$1,000
0%
$0
1960 1965 1970 1975 1980 1985 1990 1995
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Growth rates of GDP
and NHE
Percent Growth from Year Before
18%
NHE growth
16%
GDP growth
14%
12%
10%
8%
6%
4%
2%
0%
7/18/2015
1960
1965
1970
1975
1980
1985
1990
1995
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Changes in GDP, NHE,
and prices
Percent Growth from Year Before
18%
NHE growth
16%
GDP growth

Price Inflation
14%
12%
10%
8%
6%
4%
2%
0%
7/18/2015
1960
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1965
1970

1975
1980
1985
1990
1995
Price change measured by the GDP implicit price deflator. 1992=100
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.
Deflated GDP and NHE
growth
NHE growth
Percent Growth from Year Before
10%
GDP growth
8%
6%
4%
2%
0%
1960
1965
1970
1975
1980
1985
1990
1995
-2%
7/18/2015
-4%
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
I used the GDP implicit price deflator. 1992=100
.
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Public Health
4%
U.S. health services and
supplies, 1997
Insurance Admin.
5%
Other
3%
Home Health
3%
Other Products
4%
Hospital Care
34%
Dental
5%
Other Professional
6%
Prescriptions
7%
7/18/2015
Nursing Homes
8%
Physician Services
21%
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Public Health
3%
Insurance Admin.
5%
U.S. health services and
supplies, 1987
Other
2%
Home Health
2%
Other Products
5%
Hospital Care
36%
Dental
5%
Other Professional
5%
Prescriptions
6%
7/18/2015
Nursing Homes
8%
Physician Services
23%
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Sources of U.S. national health spending, 1997
Other State & Local
7%
State Medicaid
6%
Fed Medicaid
9%
Out-of-pocket
Payments
17%
Philanthropy and
non-patient
3%
Other Federal
5%
Private Health
Insurance
32%
Medicare
20%
7/18/2015
Other private
1%
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Sources of U.S. national health spending, 1987
Other State & Local
8%
State Medicaid
5%
Out-of-pocket
Payments
23%
Fed Medicaid
6%
Other Federal
7%
Philanthropy and
non-patient
3%
Medicare
17%
7/18/2015
Other private
2%
Private Health
Insurance
29%
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Summary: Main points



U.S. national health spending
13.5% of GDP.
That percentage is unchanged
since 1993.
Before that, the percentage had
been growing fast.
7/18/2015
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More main points:
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7/18/2015

Hospital account for just over 1/3
of spending.
Physicians, just over 1/5.
Those shares have fallen a bit over
the past 10 years.
Nursing homes’ percentage not
changed over 10 years.
Prescriptions, home health, public
health have grown.
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Last main points:


Out-of-pocket and private health
insurance are paying for a lower
percentage of health spending
than 10 years ago.
The Federal government’s share
has increased.
 30%,
compared with private
insurance’s 29%.
7/18/2015
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