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The U.S. is spending a growing share of the GDP on health care, outpacing other industrialized countries. This synthesis examines why costs are higher in the U.S. and what is driving their growth.
Key Findings:
- Health care inefficiency, medical technology and health status (particularly obesity) are the primary drivers of rising U.S. health care costs.
- Health payer systems that reward inefficiencies and preempt competition have impeded productivity gains in the health care sector.
- The best evidence indicates medical technology accounts for one-half to two-thirds of spending growth. While medical malpractice insurance and defensive medicine contribute to health costs, they are not large enough factors to significantly contribute to a rise in spending.
Research is consistent that demographics will not be a significant factor in driving spending despite the aging baby boomers.
The Synthesis Project
An RWJF initiative to produce user-friendly briefs and reports that synthesize research findings on perennial health policy questions. These products give policy-makers reliable information and new insights to inform complex policy decisions.
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Rising Health Care Costs
Health policy experts discuss whether steps can be taken to expand insurance coverage while keeping costs down.