Cross-country comparability in well being care worth progress: 2000-2020 – Healthcare Economist

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Cross-country comparability in well being care worth progress: 2000-2020 – Healthcare Economist


How did well being care costs change over the previous 2 a long time. That is 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.

Before we get to the outcomes, we first want to find out what sorts of worth indices are on the market? The authors cite three primary sorts:

  1. Economy vast worth indices: Examples embrace a GDP worth index
  2. Price indices protecting all items and companies consumed by households: Examples embrace the precise particular person consumption (AIC) worth index
  3. National well being deflators. These are health-specific costs indices and are produced by quite a lot of authorities entities (e.g., within the US Center for Medicare and Medicaid Services (CMS), the Bureau of Economic Analysis (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.

Although they’re broadly used to deflate well being expenditures for worldwide comparisons, the GDP and AIC worth indices seize adjustments in costs general—not adjustments in healthcare-specific costs. Given that well being care is commonly supplied by non-market producers resembling governments (the place costs could also be imperfect alerts of market worth), healthcare costs are more likely to differ markedly from economy-wide or AIC costs

The information sources the authors used are listed beneath:

Country Name of Index  Producer
Australia Total Health Price Index (THPI) Australian Institute for Health and Welfare (AIHW)
Canada Total Health Care Implicit Price Index Statistics Canada
France Price Index for Health Direction de la recherche, des études de l’évaluation et des statistiques (DRESS)
The Netherlands Price Index for Health Statistics Netherlands (Centraal Bureau voor de Statistiek, CBS)
U.S. Personal Health Care Price Index Centers for Medicare and Medicaid Services (CMS)

Results:

The well being care spending progress price was highest in Australia (5.7%) and the U.S. (4.9%) and lowest for France (2.7%). However, whereas a bigger share off the elevated spending was as a consequence of worth will increase in U.S. (55% of spending progress), this determine was a giant decrease for different international locations (48%). Further:

By wanting on the ratio of the consumption-based health-specific index to the consumption-based common worth index (AIC) over the examine interval, we discover that the United States exhibits the very best relative cumulative “excess” progress in well being costs over the examine interval (14%), adopted by Canada (12%). Australia and the Netherlands additionally exhibit increased cumulative well being worth progress over the examine interval in comparison with common worth progress, though barely decrease (7%–6%) than the primary cluster of nations. Finally, France exhibits the bottom cumulative worth progress, with well being costs rising solely barely above common costs (2%).

Cross-country comparability in well being care worth progress: 2000-2020 – Healthcare Economist

In the Figure beneath, spending progress is decomposed into costs and quantity, the place Panel A seems at consumption deflators for public payers and panel B seems at consumption deflators for personal payers. One can clearly see that worth progress was sooner 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 full paper could be learn right here.

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