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Health Care Costs: On the Rise Again

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  • Sherry Glied

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.

Suggested Citation

  • Sherry Glied, 2003. "Health Care Costs: On the Rise Again," Journal of Economic Perspectives, American Economic Association, vol. 17(2), pages 125-148, Spring.
  • Handle: RePEc:aea:jecper:v:17:y:2003:i:2:p:125-148
    Note: DOI: 10.1257/089533003765888476
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/089533003765888476
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. repec:zbw:espost:170725 is not listed on IDEAS
    3. H. Brown & José Pagán, 2006. "Managed care and the scale efficiency of US hospitals," International Journal of Health Economics and Management, Springer, vol. 6(4), pages 278-289, December.
    4. Richard Cebula, 2006. "A Further Analysis of Determinants of Health Insurance Coverage," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(3), pages 382-389, August.
    5. Pugno, Maurizio, 2006. "The service paradox and endogenous economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 17(1), pages 99-115, January.
    6. 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).
    7. Wu, Vivian Y., 2009. "Managed care's price bargaining with hospitals," Journal of Health Economics, Elsevier, vol. 28(2), pages 350-360, March.
    8. Chatalova, Lioudmila & Müller, Daniel & Valentinov, Vladislav & Balmann, Alfons, 2016. "The rise of the food risk society and the changing nature of the technological treadmill," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 1-10.
    9. repec:kap:iaecre:v:12:y:2006:i:3:p:382-389 is not listed on IDEAS
    10. Bianca Frogner, 2010. "The missing technology," Applied Health Economics and Health Policy, Springer, vol. 8(6), pages 361-371, November.
    11. Larry Howard, 2014. "Do the Medicaid and Medicare programs compete for access to health care services? A longitudinal analysis of physician fees, 1998–2004," International Journal of Health Economics and Management, Springer, vol. 14(3), pages 229-250, September.
    12. 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.
    13. repec:bla:kyklos:v:70:y:2017:i:4:p:483-510 is not listed on IDEAS
    14. 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, June.
    15. Wen-Yi Chen & Miin-Jye Wen & Yu-Hui Lin & Yia-Wun Liang, 2016. "On the relationship between healthcare expenditure and longevity: evidence from the continuous wavelet analyses," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(3), pages 1041-1057, May.
    16. 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.
    17. 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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