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National health expenditures, 1995.

K R Levit1, H C Lazenby, B R Braden

  • 1Health Care Financing Administration, Baltimore, MD 21244, USA. alongl@hcfa.gov

Health Care Financing Review
|March 3, 1997
PubMed
Summary

US healthcare spending slowed significantly between 1993-1995, reaching $988.5 billion in 1995. This slowdown was driven by reduced private insurance and out-of-pocket expenditures, impacting overall health economics.

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Area of Science:

  • Health Economics
  • Public Health Policy
  • Healthcare Administration

Background:

  • National health expenditures represent a significant portion of the US economy.
  • Understanding historical trends in healthcare spending is crucial for policy development.
  • The period from 1960 to 1995 witnessed substantial shifts in healthcare financing and delivery.

Purpose of the Study:

  • To present comprehensive data on US healthcare spending from 1960 to 1995.
  • To analyze the sources of funding for medical services and products.
  • To identify key factors influencing healthcare expenditure growth during the study period.

Main Methods:

  • Analysis of national health expenditure data from 1960 to 1995.
  • Examination of expenditures by medical service type and funding source.

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  • Comparison of spending growth rates over different time intervals.

    • Main Results:

    • In 1995, US healthcare spending reached $988.5 billion, a 5.5% increase from 1994.
    • The growth in healthcare spending between 1993 and 1995 was the slowest in over three decades.
    • Slow growth in private health insurance and out-of-pocket spending contributed to this trend.
    • Increased enrollment in managed care plans led to a decrease in the share of private funding for health spending.

    Conclusions:

    • The period 1993-1995 marked a significant deceleration in US healthcare spending growth.
    • Managed care enrollment played a key role in moderating private healthcare expenditures.
    • These findings highlight the dynamic interplay between healthcare financing, utilization, and policy interventions.