Health Care Cost Drivers and Options for Control

Loading...
Thumbnail Image
Penn collection
Issue Briefs
Degree type
Discipline
Subject
"health care
costs
health cost
health economics"
Health Economics
Health Policy
Funder
Grant number
Copyright date
Distributor
Author
Glickman, Aaron
Weiner, Janet
Contributor
Abstract

The growth of health care costs remains a serious concern in the United States. Slowing this growth involves understanding what drives health care costs and how to target those drivers effectively. In this brief, we review the relative importance of different health care cost drivers, including insurance benefits design, price inflation, provider incentives, technological growth, and inefficient system performance. We analyze the impact of these factors on the growth of health care spending in the last decade, which has been concentrated in hospitals and felt most acutely in the private market. We find that unit prices and technology remain the most important cost drivers of this recent growth. In reviewing public and private payer initiatives that target health care costs, we find that some have yielded modest results, but the evidence on most strategies is inconclusive or mixed. Designing and implementing effective interventions to slow cost growth remains a challenge, particularly in the privately insured market, where premiums have risen considerably in the last decade.

Advisor
Date Range for Data Collection (Start Date)
Date Range for Data Collection (End Date)
Digital Object Identifier
Series name and number
Publication date
2020-04-28
Volume number
Issue number
Publisher
Publisher DOI
Journal Issue
Comments
Recommended citation
Collection