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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
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.
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.
- 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.
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