Why are we paying more for health care in the U.S.?
Health care costs in the United States have doubled over the past two decades, driven by the aging of the population and increasing reliance on prescription drugs.
But according to a new report, health care is not necessarily the main driver of the rising costs, with other factors in play including population growth and an aging population that will likely see even more costs in coming years.
“The costs are driven by two trends,” says Andrew Witty, a professor of health care finance at Northeastern University in Boston, who authored the study.
“On the one hand, people who are older and sicker are spending more.
On the other hand, more people are getting access to medical care and that drives down the cost.”
In the United Kingdom, where healthcare spending grew more than 60 per cent between 2005 and 2014, a rise in medical costs meant that the average person paid about $30,000 more per year than in 2005, according to data from the Office for National Statistics.
Health care spending in Canada has grown steadily since the 1970s, even as the population has shrunk.
Between 2007 and 2014 in Canada, average annual health care spending rose from $3,500 to $12,000, according a recent report from the Fraser Institute.
In the U, spending in 2015 is forecast to hit $12.3 trillion, an increase of 6.3 per cent over 2014, according the Fraser.
Health spending in the UK rose more than 40 per cent from 2014 to 2020, while spending in Japan and Germany is projected to increase by only 2 per cent.
Health costs in Canada are expected to grow between 3.5 per cent and 5 per cent annually until 2024.
And in the US, the cost of health insurance rose nearly 14 per cent in the first six months of 2017, from $2,935 per household to $3.1 million, according for the National Bureau of Economic Research.
But while overall healthcare spending is rising in the developed world, the growth in the developing world is outpacing that in the Western world, which is the fastest-growing region of the developed Western world.
The rise in health care costs is particularly noticeable in India, where health care consumption has risen by almost 10 per cent per capita between 2009 and 2015.
Health-care costs in India rose 15 per cent a year in the five years between 2009 to 2015, compared with a 1.5-per-cent rise in the rest of the world.
In China, the number of people in hospitals has grown by 25 per cent, but the number receiving treatment has dropped by more than three times that, to a total of over 100 million, from more than 600 million, in the same period.
The average patient costs $1,400 in the most populous country, according data from McKinsey & Co., and the average family in India spends $9,700 per year on healthcare, compared to the United Nations’ average of $7,200.
The report, “Why are we charging more for healthcare in the West?” was co-authored by Professor Witty and Dr. J.K. Jha from the Centre for Population Health and Population Policy at Norteep University.
“People in developing countries are getting more healthcare.
And they are paying more.
And that’s driving down the costs,” he says.
Witty says that this will likely become more of a problem as the health care system continues to adapt.
“We’re in a situation where we’re seeing more health care coverage, and we’re paying more per service,” he explains.
“This will become more and more of an issue over the next couple of decades.”
In an interview with CBC News, Witty also said the study looked at health care expenditures in developed countries, which are the countries where people pay the highest prices.
Health insurance, for instance, in Canada and the United UK costs about three times as much as in the countries with the lowest average prices, according McKinsey.
“So, this is a really interesting study that looks at how the developed economies have evolved over the last 50 years,” he said.
And it’s a very expensive country to be in.” “
If you look at the cost per person in developed economies today, you have the United Arab Emirates, which has a population of about 4.5 billion people.
And it’s a very expensive country to be in.”
According to the World Bank, the United countries average per capita spending on healthcare is $8,739, with a gap of about $1.1 trillion in the middle of the middle.