What Are the Biggest Drivers of Cost in U.S. Health Care?

The United States spent an estimated $2.5 trillion on health care in 2009, according to the federal government's National Health Expenditure Accounts. This translated to 17.6 percent of the country's gross domestic product and per capita costs of $8,086. Between 1985 and 2006, health care spending rose by an average of 7.7 percent each year, while gross domestic product rose only 5.6 percent per year. High costs in health care strain state and federal governments and make it difficult for people to afford health insurance.

  • U.S. health care costs continue to rise, with per capita costs already the highest in the world.
  • Higher prices, worse efficiency and the cost of insurance administration are the leading reasons U.S. costs are higher.
  • Significant factors driving growth in spending are medical technology, obesity and low productivity gains in health care.

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