ABSTRACT
Despite near universal interest in healthcare cost containment, overall costs continue to spiral upward. Healthcare costs have grown on average 2.4 percentage points faster than the GDP since 1970. With almost half of healthcare spending used to treat just 5 percent of the population, many policy experts believe new technologies and the spread of existing ones account for a large portion of medical spending. A recent Kaiser Health Tracking Poll found that more than half (53 percent) of Americans say their family cut back on medical care in the past twelve months because of cost concerns. They are doing this by relying on home remedies and over-the-counter drugs rather than visiting a doctor, skipping dental care, and postponing the healthcare they need. Beyond actual financial hardship due to medical care, nearly half of Americans (45 percent) report that they are “very worried” about having to pay more for their healthcare or health insurance.
