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Source: Congressional Budget Office
HEALTH CARE COSTS AS PERCENTAGE OF GDP
40%
We
W can’t’ expect to
30%
compete when health
20%
10%
care accounts for 1/5
0%
of our economy.
1977 1987 1997 2007 2009 2030 2040
Dollars spent on health care TOTAL U.S. DOLLARS SPENT ON HEALTH CARE
increased from (in trillions)
$$4
$
$27.5 BILLION in 1960
to $2.2 TRILLION in 2007. $2
This equals $7,290/person,
nearly twice the average of $0
other developed nations. 1960 1970 1980 1990 2000 2007
Source: Council of Economic Advisors: The Economic Case for Health Reform, 2009; Center for Medicare and Medicaid Services, Health Expenditure Accounts, 2009
IN 2007
$2.2 TRILLION
U.S.
U S FOOD U.S.
U S HEALTH CARE
* Excludes alcoholic beverages and tobacco products
Source: Bureau of Economic Analysis; National Bureau of Statistics of China, MGI analysis,
Council of Economic Advisors: The Economic Case for Health Reform, 2009
U.S. EMPLOYERS AND WORKERS SPEND SIGNIFICANTLY
MORE ON HEALTH THAN G-5,
G 5, BIC COUNTERPARTS
$1.20
$1.00
$$1.00
$0.80
$0.63
$0.60
$0.40
$0.20 $0.15
$$-
U.S. G‐5 Group BIC Group
Source: The Business Roundtable Health Care Value Comparability Study
Rising healthcare costs affect the
l
long-term
t b
budget
d t problem
bl in
i two
t ways.
1 The
1. Th iincreasing
i per-person costt off providing
idi health
h lth care
through Medicare and Medicaid increases federal
spending.
spending
Source: The Business Roundtable Health Care Value Comparability Study
• Insurance premiums in
Virginia
g increased
nearly THREE AND Virginia Premium Increases vs. Wage Increases
HALF TIMES FASTER 100%
than wages.
80%
%
60%
• Average annual family
premium rose from 40%
Source: Families USA, Medical Expenditure Panel Survey (MEPS) data, DPC
HOUSEHOLD DOLLAR IN 2016
40%
%
IF THIS TREND CONTINUES:
60%
By 2016, 40 cents on every
OTHER SPENDING
dollar a typical Virginia
family earns will be
consumed by Health Care
Costs.
Costs
Source: Families USA, Medical Expenditure Panel Survey (MEPS) data, DPC
Exploding
p od g federal
ede a deficit
de c t
Doubling g of healthcare p
premium
costs for American families