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Monday, April 15, 2024

Cross-country comparability in well being care value development: 2000-2020 – Healthcare Economist

How did well being care costs change over the previous 2 a long time. That’s the query a paper by Papanicolas (2024) goals to reply, evaluating US costs to these from Australia, Canada, France, and the Netherlands between 2000 and 2020.

Earlier than we get to the outcomes, we first want to find out what kinds of value indices are on the market? The authors cite three most important varieties:

  1. Economic system large value indices: Examples embrace a GDP value index
  2. Worth indices masking all items and providers consumed by households: Examples embrace the precise particular person consumption (AIC) value index
  3. Nationwide well being deflators. These are health-specific costs indices and are produced by a wide range of authorities entities (e.g., within the US Heart for Medicare and Medicaid Companies (CMS), the Bureau of Financial Evaluation (BEA) and the Bureau of Labor Statistics (BLS) all produce nationwide well being deflators)

The authors argue that economy-wide and AIC deflators do a poor job for capturing adjustments in well being care costs.

Though they’re broadly used to deflate well being expenditures for worldwide comparisons, the GDP and AIC value indices seize adjustments in costs general—not adjustments in healthcare-specific costs. On condition that well being care is usually offered by non-market producers akin to governments (the place costs could also be imperfect alerts of market worth), healthcare costs are prone to differ markedly from economy-wide or AIC costs

The information sources the authors used are listed beneath:

Nation Identify of Index  Producer
Australia Complete Well being Worth Index (THPI) Australian Institute for Well being and Welfare (AIHW)
Canada Complete Well being Care Implicit Worth Index Statistics Canada
France Worth Index for Well being Path de la recherche, des études de l’évaluation et des statistiques (DRESS)
The Netherlands Worth Index for Well being Statistics Netherlands (Centraal Bureau voor de Statistiek, CBS)
U.S. Private Well being Care Worth Index Facilities for Medicare and Medicaid Companies (CMS)


The well being care spending development price was highest in Australia (5.7%) and the U.S. (4.9%) and lowest for France (2.7%). Nonetheless, whereas a bigger share off the elevated spending was on account of value will increase in U.S. (55% of spending development), this determine was an enormous decrease for different nations (48%). Additional:

By trying on the ratio of the consumption-based health-specific index to the consumption-based basic value index (AIC) over the examine interval, we discover that the US exhibits the best relative cumulative “extra” development in well being costs over the examine interval (14%), adopted by Canada (12%). Australia and the Netherlands additionally exhibit larger cumulative well being value development over the examine interval in comparison with basic value development, though barely decrease (7%–6%) than the primary cluster of nations. Lastly, France exhibits the bottom cumulative value development, with well being costs rising solely barely above basic costs (2%).

Within the Determine beneath, spending development is decomposed into costs and quantity, the place Panel A appears at consumption deflators for public payers and panel B appears at consumption deflators for personal payers. One can clearly see that value development was quicker for well being care bought by public payers in comparison with these bought by households (i.e., out-of-pocket prices or personal insurance coverage).

The total paper will be learn right here.

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