Decompositions of health spending growth

The consensus finding is that technology growth is a if not the leading driver of health spending growth, though other factors play large rolls too.Another way to decompose health spending growth is explored in a recent study in Health Affairs by Martha Starr, Laura Dominiak, and Ana Aizcorbe. The authors examine the effects on health spending growth of disease prevalence, cost of care per case, and other factors that play smaller roles. They expand the findings of earlier work by Charles Roehrig and David Rousseau who showed that health spending growth between 1996 and 2006 was driven predominantly by the cost of care, not increasing disease prevalence, as shown in the following chart.

via Decompositions of health spending growth.

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