As part of their annual report, The California Healthcare Foundation recently released “Health Care Costs 101,” which provides details on the progression of the United States’ Medical Costs. Believe it or not, US health spending has actually been in a slow growth pattern for the last decade. In fact, in 2009, health care spending had the lowest increase on record at only 3.9 percent. But – that is all about to change.
In 2014, the Affordable Care Act (ACA) is expected to cause a one-time spike in health care spending that will increase costs by 7.4 percent over 2013.
Here are some key findings taken directly from the study:
- Nearly $2.6 trillion was spent on health care in the US in 2010, or $8,402 per person.
- In 2010, the federal government became the largest financer of health care (29 percent of spending), surpassing households (28 percent) for the first time.
- Spending on Medicare and Medicaid together consumed 23 percent of the federal budget, exceeding defense spending by three percentage points.
- The federal government spent half of its revenues on health care; health care costs only consumed 6 percent of personal income.
- Public health insurance paid for 39 percent of the nation’s health care; private health insurance paid for 33 percent. Out-of-pocket spending by consumers accounted for 12 percent of all spending, a figure which has been declining for many years.
- 96 percent of prescription drug costs in 1960 were picked up by American consumers. In 2010, this number was down to 20 percent. The federal government pays over half of these costs today.
Infographics make us smile. They provide such a visually pleasing way to organize complex information. When an infographic is animated and interactive, we really lose control! The California Healthcare Foundation released this one in conjunction with their findings. It further illustrates the many changes that have taken place over the years regarding healthcare costs in America.