Trends in Health Care Spending by the Private Sector
CONGRESSIONAL BUDGET OFFICE (U S CONGRESS) WASHINGTON DC
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A recent dramatic slowdown in the rate at which private-sector spending for health insurance increases each year has raised many questions about the meaning of the trend and its implications for the future. According to the federal governments national health accounts NHA, the annual growth rate of private health insurance expenditures tumbled from around 14 percent in 1990 to less than 3 percent in 1994 and 1995. Understanding the factors that contribute to that reduction is of particular concern to policymakers who are seeking ways to slow the growth of Medicare spending. At the same time that fundamental changes are occurring in the market for private health insurance, Medicare spending has continued to rise virtually unabated, growing by almost 12 percent in 1995-more than four times the rate for private-sector spending.
- Administration and Management