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Market Overview

Health Care Costs 101

Katherine B. Wilson

April 2009

In 2007, national health care spending reached $2.2 trillion, or $7,421 per person. If left unchecked, it is projected to reach 20.3% of the country's GDP by 2018. Although there has been some moderation in health spending growth in recent years, its share of the economy continues to grow.

Health Care Costs 101, now published as part of the California HealthCare Foundation's California Health Care Almanac, provides general background on U.S. medical spending. It details how much we spend, on which services, and what proportion is paid directly by consumers.

Highlights include:

• Health spending grew 6.1% in 2007, the smallest increase since 1998, extending a five-year decelerating trend. Nevertheless, health spending continues to outpace inflation and is projected to reach $2.5 trillion this year.
• Projections indicate that the recession will more than offset the recent moderation in health spending. Health care's share of the GDP is expected to rise rapidly, to 17.6% of GDP this year.
• Nationally, per-person costs for health care increased 81% between 1997 and 2007.
• While out-of-pocket costs for consumers continue to rise, over the past 40 years they have declined as a share of overall health spending and are now flat at about 14%.

The 2009 edition of this report is based on 2007 national data, the latest information on health spending available from the U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) Office of the Actuary. Data on health spending for California is released as the data is made available. The most current version is the 2006 edition, below.

The complete report, as well as quick guides to the national and California data highlights, is available under Document Downloads below. Also available are past editions.

Document Downloads

Health Care Costs 101, 2009 Edition (1.395MB)

Health Care Costs 101: National Quick Reference Guide, 2009 (560K)

California Quick Reference Guide, 2009 (195K)

Snapshot: Health Care Costs 101, 2008 Edition (1.368MB)

Health Care Costs 101: National Quick Reference Guide, 2008 (217K)

Snapshot: Health Care Costs 101, 2007 Edition (760K)

Health Care Costs 101: National Quick Reference Guide, 2007 (197K)

Snapshot: Health Care Costs 101, 2006 Edition (812K)

Health Care Costs 101: National Quick Reference Guide, 2006 (171K)

Health Care Costs 101: California Addendum, 2006 Edition (777K)

Snapshot: Health Care Costs 101, 2005 Edition (213K)

Health Care Costs 101: National Quick Reference Guide, 2005 (58K)

Health Care Costs 101: California Addendum, 2005 Edition (528K)

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