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National health expenditures, 1993.

K R Levit1, A L Sensenig, C A Cowan

  • 1Health Care Financing Administration, Office of the Actuary.

Health Care Financing Review
|March 4, 1995
PubMed
Summary

United States health care spending grew faster than the economy from 1960-1993. Federal funding for Medicaid and Medicare increased, significantly raising public sector health expenditures.

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Area of Science:

  • Health Economics
  • Public Health Policy
  • Healthcare Finance

Background:

  • National health care expenditures have historically outpaced overall economic growth.
  • Understanding trends in healthcare spending and funding sources is crucial for policy development.

Purpose of the Study:

  • To analyze US health care spending trends from 1960 to 1993.
  • To examine the sources of funding for these expenditures, with a focus on the public sector.

Main Methods:

  • Data compilation and analysis of national health care expenditure statistics.
  • Examination of trends in medical services and product costs.
  • Assessment of funding shares from various sources, including federal programs.

Main Results:

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  • While growth in health care spending slowed in the early 1990s, it continued to outpace economic growth.
  • The Federal Government's share of the national health care bill increased significantly between 1991 and 1993.
  • This increase was driven by rising expenditures through Medicaid and Medicare programs.

Conclusions:

  • The public sector, particularly the federal government, played an increasing role in financing US health care during the study period.
  • The growing share of federal health spending has implications for overall federal budget allocations.