Figure 14
Average Annual Real Growth in per Capita Health Spending (1960–1998)
4.0%
3.5%
3.5%
3.0%
2.7%
2.6%
2.6%
2.6%
2.5%
2.3%
2.5%
2.0%
1.5%
0.8%
1.0%
0.5%
0.0%
Source: Gerard F. Anderson et al., “Health Spending and Outcomes: Trends in OECD Countries, 1960–1998,”
Health Affairs, May/June 2000.
studies, health economist Joseph Newhouse
between health care spending and life expectan-
found that 90 percent of the variation in
cy at birth in OECD countries, at age 80 there is
health care spending among developed coun-
a significant correlation. An 80-year-old U.S.
tries is based on income alone.85
female can expect to live almost a year longer
than her British counterpart. An 80-year-old
Most international statistics on health care
U.S. male can expect to live a half-year longer
spending are produced by the Organization for
than his British counterpart.83
Economic Cooperation and Development.
However, OECD statistics are not always useful
Fewer than one-
because different countries use different meth-
third of British
Myth No. 8: Countries with
ods to report costs.86 No effective international
patients who
National Health Insurance
guidelines exist, and some countries include
services that others do not.87 For instance, the
Systems Have Been More
suffer a heart
OECD definition of health care expenditures
Successful Than the United
attack have access
includes nursing home care. But while
States in Controlling
to beta-blockers,
Germany includes nursing home care as part of
total health expenditures, Britain does not.88
Health Care Costs
despite the fact
Some countries count hospital beds simply by
that postheart
counting metal frames with mattresses,
The United States spends more on health
whether or not they are in use. In others, a "bed"
care than any other country in the world, both
attack use of the
is counted only if it is staffed and operational.89
in dollars per person and as a percentage of
drug reduces the
GDP. Does that mean that our predominantly
Figure 14 shows the result of an attempt
risk of sudden
private health care system is less able to control
by scholars at Johns Hopkins University and
spending than developed countries with
OECD to develop more accurate health care
death from a
national health insurance? Not necessarily.
spending measurements among OECD
subsequent heart
Almost without exception, international
countries. The study calculated the average
comparisons show that wealthier countries
annual increase in the percentage of per capi-
attack by 20
spend a larger proportion of their GDP on
ta spending on health care by OECD coun-
percent.
health care.84 In his classic 1977 and 1981
tries for the period 1960 to 1998.
15