The price of care

The United States is notorious for its ballooning healthcare costs. A recent New York Times article considered the cause of the price discrepancy between the United States and its peers when it comes to healthcare spending. According to the article, several decades ago, the United States more closely matched its peer nations in healthcare spending. However, in 2016, spending totaled 17.9% of gross domestic product ($3.3 trillion) - nearly double that of other nations.

So why are Americans spending twice as much of their economy on health care compared to other nations? Citing a JAMA study, the New York Times finds that the biggest cause of rising costs comes down to a combination of factors. Less than half of the growth in healthcare costs can be accounted for by population growth and aging, and by some measures, Americans have gotten healthier, spending less on health care. This decrease isn't offset by an increase in spending by the more sickly. Over sixty percent of the increase in spending is due to higher prices and higher intensity of services.