Where Are the Health Care Cost Savings?

AS OF JULY 2010, THE UNITED STATES SPENT 2. 6 TRILlion per year on health care. It is not just the level of spending that is of concern but the rate of growth over time. During the last30years, thegrowth inUS healthcarespendinghasbeen2. 1%moreperyear thangrowth in gross domestic product (GDP). This is why the percentage of GDP attributable to health has nearly doubled in 30 years. At this rate, projections suggest that by 2040 1 of every 3 dollarswillbespentonhealthcareandby2080, itwillbenearly 1ofevery2dollars. In2010, theentireGDPofFrancewas2. 58 trillion, theworld’s fifth-largesteconomy. ThatmeansUShealth carespendingisequivalent totheworld’s fifth-largesteconomy.