09.20.11.NHE international perspective

09.20.11.NHE international perspective - International...

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International Perspective on U.S. Health Care Costs and Value HCMG 101 Daniel Polsky September 20, 2011
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Review • U.S. health care spending – High – Growing much faster than inflation and GDP • Medical technology and the health insurance system are the two leading catalysts of rising spending. • Hard to change these trends – Temporary or ineffective efforts
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Is more better? • Isn’t it a good thing for our society to be spending more resources to the sector that cares for the aged and sick? • How much should our society spend on medical care? – It depends on the value we get in return
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Does the U.S. receive value for the money spent on health care? – Today’s Objective: • International comparison perspective • Consumer sovereignty perspective – Thursday’s Objective: • Perspective of David Cutler: “your money or your life”
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International Comparisons 1. How does our spending compare to the health spending of other countries? 2. Why is it more that other countries? 3. Do we get what we pay for?
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International Comparisons 1. How does health care spending in the U.S. compare to the health spending of other countries?
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Per Capita Total Health Care Expenditures, U.S. and Selected Countries, 2007 * Differences in methodology; see "Comparability over time" at http://www.ecosante.org/OCDEENG/411.html and "Notes on Data Comparability" at http://www.ecosante.org/OCDEENG/529.html . ^OECD estimate. Notes: Amounts in U.S. $ Purchasing Power Parity. More information available at www.oecd.org/std/ppp . Source: Organization for Economic Co-operation and Development. OECD Health Data 2009, from the SourceOECD Internet subscription database updated June, 2009. Copyright OECD 2009, http://www.oecd.org/health/healthdata. 0 1000 2000 3000 4000 5000 6000 7000 8000
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$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 US NOR SWIZ CAN NET GER FR DEN AUS SWE UK NZ Health Care Spending per Capita, 1980-2008 Source: OECD Health Data 2010 Adjusted for Differences in Cost of Living
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International Comparisons 1. How does our spending compare to the health spending of other countries? 2. Why is it more that other countries?
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Why is US Spending So High? Is it our high GDP? • Higher ability to pay for health care typically leads to more spending in health care • GDP explains 90% of differences in health spending between OECD countries • Yet the high US spending is still an outlier – Is health care a luxury good? Source: Reinhardt, Hussey, and Anderson, 2004.
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Total Health Spending as a % of GDP, 2007 2007: US spent 16% of GDP on health care Source: OECD Health Data 2009-Version: June 09 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0
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Other Reasons Why U.S. Spending is So high? • Capacity of health system
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This note was uploaded on 10/26/2011 for the course ASDF 2342 taught by Professor 2adga during the Spring '11 term at Mansfield University of Pennsylvania.

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09.20.11.NHE international perspective - International...

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