TAILIEUCHUNG - KEY INFORMATION ON HEALTH CARE COSTS AND THEIR IMPACT

It is important to note that the requirements for sustainability condi- tions vary by subsection because they are inherently different. In par- ticular, these requirements to create sustainability may be more difficult to achieve in practice in water and sanitation, in drainage, and in the transportation subprojects than they are in building schools or clinics. From the perspective of economic infrastructure, the term demand- driven means not just that the project idea originated from the commu- nity requesting the project, but even more important, that the commu- nity is ready to pay an opportunity cost for choosing one project over another. Effective demand implies that the users or the. | HEALTH CARE COSTS A PRIMER MARCH 2009 KEY INFORMATION ON HEALTH CARE COSTS AND THEIR IMPACT THE HENRY J. KAISER FAMILY FOUNDATION HEALTH CARE COSTS A PRIMER KEY INFORMATION ON HEALTH CARE COSTS AND THEIR IMPACT MARCH 2009 TABLE OF CONTENTS How Much Does the . Spend on Health and How Has It Changed .2 The . spends about 7 400 per person on health care each year. Sixteen percent of the . economy is devoted to health care. Health care spending is consuming an increasing share of economic activity over time and has exceeded economic growth in every recent decade. How Does . Health Spending Compare with Other Countries .4 The . spends substantially more on health care than other developed countries. As of 2006 health spending in the . was about 90 percent higher than in many other industrialized countries. How Does Health Care Spending Vary by Person .5 A small share of people accounts for a significant share of expenses in any year. In 2006 almost half of all health care spending was used to treat just 5 percent of the population. Health care spending also varies by factors such as age and sex. Adults aged 65 and older have the highest health care spending averaging 8 776 per person in 2006. What Do Health Expenditures Pay for and Who Pays for Them .7 Most health care spending about half is for care provided by hospitals and physicians. Private funds pay for about 55 percent of total health spending. How Do Health Care Costs Impact Families and Employers .9 Health insurance premium increases consistently outpace inflation and the growth in workers earnings. About 30 percent of the poor spent more than 10 percent of their income on health care in 2004. Eligibility standards for public programs such as Medicaid and CHIP do not keep pace with rapid increases in the cost of health coverage. Why Are Health Care Costs Growing Faster Than the Economy Overall 13 Wealthier countries can afford to spend more on health care technologies. The .

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