Not Available for Download

Health Care Spending: Historical Trends and New Directions

Posted: 18 Nov 2016  

Alice Chen

University of Southern California - Schaeffer Center for Health Policy and Economics

Dana Goldman

University of Southern California - Schaeffer Center for Health Policy and Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 2016

Abstract

Over the past five decades, broad changes in the US health care system have dramatically influenced growth in health care expenditures. This review identifies the salient factors driving the growth of medical expenditures and how they influenced the trajectory of health economics research. We find that the research identified — and was strongly influenced by — four eras of expenditure growth: period 1, coverage expansion; period 2, experimentation with financial incentives; period 3, the managed care backlash; and period 4, a golden era of declining expenditure growth. We conclude by discussing some themes from this research suggesting optimism that, going forward, we can curb excess expenditure growth above GDP growth without harming population health.

Suggested Citation

Chen, Alice and Goldman, Dana, Health Care Spending: Historical Trends and New Directions (October 2016). Annual Review of Economics, Vol. 8, pp. 291-319, 2016. Available at SSRN: https://ssrn.com/abstract=2870849 or http://dx.doi.org/10.1146/annurev-economics-080315-015317

Alice Chen (Contact Author)

University of Southern California - Schaeffer Center for Health Policy and Economics ( email )

635 Downey Way
Los Angeles, CA 90089-3333
United States

Dana Goldman

University of Southern California - Schaeffer Center for Health Policy and Economics ( email )

635 Downey Way
Los Angeles, CA 90089-3333
United States

Paper statistics

Abstract Views
93