National health expenditures, 1998

Area of Science:

• Health Economics
• Healthcare Policy
• Public Health Finance

Background:

• National health care expenditures reached $1.1 trillion in 1998.
• This represented a 5.6% increase from the prior year, marking five consecutive years of growth below 6%.

Purpose of the Study:

• To analyze the underlying shifts in the healthcare system despite stable overall spending growth.
• To examine the impact of the Balanced Budget Act of 1997 (BBA) on public payers.
• To assess the effects of rising healthcare costs and premium growth on private payers.

Main Methods:

• Analysis of national health care expenditure data for 1998.
• Review of the effects of the Balanced Budget Act of 1997 (BBA) on public payers.
• Examination of trends in private payer costs and premium growth.

Main Results:

• Overall national health care spending growth remained stable at 5.6% in 1998.
• Public payers began to experience the effects of the Balanced Budget Act of 1997 (BBA).
• Private payers faced increased healthcare costs and rising premium growth.

Conclusions:

• While overall health care spending growth appeared stable, significant structural changes were occurring within the system.
• The Balanced Budget Act of 1997 (BBA) started influencing public payer dynamics.
• Increased costs and premiums presented challenges for private payers in 1998.