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History of Health Spending in the United States, 1960-2013

1 History of Health Spending in the United States, 1960-2013 Aaron C. Catlin and Cathy A. Cowan November 19, 2015 Abstract: Health care expenditures have steadily increased as a share of gross domestic product (GDP) over the last half century, increasing from percent of GDP in 1960 to percent in 2013. Over this time period the mix of goods and services consumed as well as the payers, programs, and sponsors of Health care Spending have experienced dramatic changes. The objective of this paper is to analyze historical trends in Health Spending in the United States according to the major factors that influenced Spending , including policy changes, legislation, recessions, prices, and public and private initiatives.

5 factors (such as technology,18 population, and use and intensity) that influence growth (Exhibits 4 and 5). In the 1960s and early 1970s, health expenditure growth was dominated by non-price factors, as expanded health insurance coverage and …

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