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Monday, April 15, 2024

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

How did well being care costs change over the previous 2 many years. 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 sorts of worth indices are on the market? The authors cite three major sorts:

  1. Economic system large worth indices: Examples embody a GDP worth index
  2. Worth indices overlaying all items and providers consumed by households: Examples embody the precise particular person consumption (AIC) worth index
  3. Nationwide well being deflators. These are health-specific costs indices and are produced by quite a lot of authorities entities (e.g., within the US Heart for Medicare and Medicaid Providers (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 modifications in well being care costs.

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

The info sources the authors used are listed beneath:

Nation Title of Index  Producer
Australia Whole Well being Worth Index (THPI) Australian Institute for Well being and Welfare (AIHW)
Canada Whole Well being Care Implicit Worth Index Statistics Canada
France Worth Index for Well being Course 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 Providers (CMS)


The well being care spending development charge was highest in Australia (5.7%) and the U.S. (4.9%) and lowest for France (2.7%). Nevertheless, whereas a bigger share off the elevated spending was attributable to worth 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 common worth index (AIC) over the examine interval, we discover that the USA 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 greater cumulative well being worth development over the examine interval in comparison with common worth development, though barely decrease (7%–6%) than the primary cluster of nations. Lastly, France exhibits the bottom cumulative worth development, with well being costs rising solely barely above common costs (2%).

Within the Determine beneath, spending development is decomposed into costs and quantity, the place Panel A appears to be like at consumption deflators for public payers and panel B appears to be like at consumption deflators for personal payers. One can clearly see that worth 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 may be learn right here.

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