What is the True Cost of Healthcare ?

Many people say that there is not problem with access to care in the United States there is a problem with the cost of care. The cost of care in America has grown an exponential rate over the last 25 years. Healthcare is projected to be 17.6% of National GDP by 2009. Americans will spend 2.5 trillion dollars in healthcare cost in 2009, which is about $8,160 dollars per resident.

When these figures are looked at and compared to the quality of care that most Americans receive on a yearly and routine basis these cost are out of line with the value that most care given. America does offer great quality of care. However quality does not justify these cost.

Back in 1970 the U.S. spent 75 Billion dollars on healthcare with was about $365 per resident at 7.2% of GDP. Healthcare from then on continue to rise at 2.4 percentage points faster than GDP growth. In 2018 healthcare is projected to be 20.3% of GDP. This 4.3 trillion dollars and $13,100 per resident. This path is unsustainable. Compared to other developed countries. OECD countries such as Canada (10% of GDP) and France (11% of GDP) have lower GDP percentages.

Although most conversations are based on the cost per person actual cost are very skewed. For example ten percent of people account for 63% percent of healthcare services. Only 1% account for 21% of healthcare services. One half of the population that accounts for lowest healthcare spending is only 3% of healthcare cost. These figures puts a new dynamic onto the healthcare debate.