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Harvard University May 29, 2012

Joseph Newhouse. Harvard University May 29, 2012. The US Is Not Such an Outlier in Growth Rates *. Average excl US = 4.2%. Steady Increases* in Real US Spending/person/year, by decade. Medicare and Medicaid enacted. Average = 4.2%. Financial crisis. Managed care.

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Harvard University May 29, 2012

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  1. Joseph Newhouse Harvard University May 29, 2012

  2. The US Is Not Such an Outlier in Growth Rates* Average excl US = 4.2% *Data are for the G-7. See notes for sources and further explanation.

  3. Steady Increases* in Real US Spending/person/year, by decade Medicare and Medicaid enacted Average = 4.2% Financial crisis Managed care *Sources: CMS National Health Accounts. Newhouse, JEP 1992(3), Stat Abst, Ec Rpt Pres. GDP Deflator.

  4. Inferences from the Two Prior Slides • US specific factors explain its high level of spending • But an explanation of the cost increase needs to hold across countries and decades

  5. Was It Worth It? • There have been life expectancy gains in all countries • 1970-2009: US life expectancy grew 7.4 years, from 70.8 years to 78.2 years • But not all of this gain can be attributed to spending on medical care Life expectancy: Health US, 2004, National Vital Statistics Report 59:4. 2009 data preliminary.

  6. Percentage of Decrease in Deaths from Coronary Heart Disease Attributed to Treatments and Risk-Factor Changes, 1980-2000 Almost half of US reduction in CHD*, 1980-2000 attributable to treatments; most of risk factor gain is better hypertension and cholesterol control (most of rest is fall in smoking) * CHD = Coronary Heart Disease. Source: Ford, et al. NEJM, 2007;356:2388-2398. See notes for more.

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