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Health Care Costs: On the Rise Again

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  • Sherry Glied
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    Abstract

    Since 1999, health care costs have been growing faster than national income. This rapid growth has occurred as the ability of private and public purchasers to reduce service utilization and bargain for lower prices has fallen, insurers have recouped lost profits through higher premiums, and new technologies have driven up costs throughout the sector. Private insurance market responses to these rising costs may lead to reductions in the number of people with insurance and to increased fragmentation of the insurance market. Over time, technological change in medicine both increases costs and improves the quality of care. The challenge for public policy is to maintain insurance and some degree of equity in the face of these rising costs.

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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/089533003765888476
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    Bibliographic Info

    Article provided by American Economic Association in its journal Journal of Economic Perspectives.

    Volume (Year): 17 (2003)
    Issue (Month): 2 (Spring)
    Pages: 125-148

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    Handle: RePEc:aea:jecper:v:17:y:2003:i:2:p:125-148

    Note: DOI: 10.1257/089533003765888476
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    Cited by:
    1. Chad D. Meyerhoefer & Samuel H. Zuvekas, 2010. "New estimates of the demand for physical and mental health treatment," Health Economics, John Wiley & Sons, Ltd., vol. 19(3), pages 297-315.
    2. Breyer, Friedrich & Franz, Wolfgang & Homburg, Stefan & Schnabel, Reinhold & Wille, Eberhard, 2004. "Reform der sozialen Sicherung," EconStor Books, ZBW - German National Library of Economics, number 92399, November.
    3. Richard Cebula, 2006. "A Further Analysis of Determinants of Health Insurance Coverage," International Advances in Economic Research, Springer, vol. 12(3), pages 382-389, August.
    4. Bianca Frogner, 2010. "The missing technology," Applied Health Economics and Health Policy, Springer, vol. 8(6), pages 361-371, November.
    5. Ronen Avraham & Leemore S. Dafny & Max M. Schanzenbach, 2009. "The Impact of Tort Reform on Employer-Sponsored Health Insurance Premiums," NBER Working Papers 15371, National Bureau of Economic Research, Inc.
    6. Cebula, Richard & Nair-Reichert, Usha & Taylor, Kyle, 2009. "Does a Lack of Health Insurance Elicit an Increase in the Rate of Voluntary Military Enlistment in the U.S.? The "Military Health Care Magnet Hypothesis," 1974-2007," MPRA Paper 56719, University Library of Munich, Germany.
    7. Pugno, Maurizio, 2006. "The service paradox and endogenous economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 17(1), pages 99-115, January.
    8. Michael Stolpe, 2003. "Ressourcen und Ergebnisse der globalen Gesundheitsökonomie, Einführung und Überblick," Kiel Working Papers 1177, Kiel Institute for the World Economy.
    9. Zon ,Adriaan,van & Muysken ,Joan, 2003. "Health as a Principal Determinant of Economic Growth," Research Memorandum 024, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    10. H. Brown & José Pagán, 2006. "Managed care and the scale efficiency of US hospitals," International Journal of Health Care Finance and Economics, Springer, vol. 6(4), pages 278-289, December.
    11. Hugo Benitez-Silva & Moshe Buchinsky & John Rust & Emine Boz & Joseph B. Nichols & Sharbani Roy & Ignez Tristao, 2005. "Health Status, Insurance, and Expenditures in the Transition from Work to Retirement," Department of Economics Working Papers 05-11, Stony Brook University, Department of Economics.

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