The Kaiser Family Foundation released an updated primer that examines recent trends in health care costs in the U.S. and the factors that contribute to their rapid rise.

Prepared by Foundation staff, the primer notes that the annual growth in national health spending has exceeded the growth of the economy as a whole by an average 2.4 percentage points from 1970 to 2007. During this period, the share of the economy devoted to health care grew from 7.2 percent to 16.2 percent, and it is projected to increase to one-fifth by 2018. Reducing that rate of growth poses significant challenges for efforts to reform the nation's health care system.

The primer describes the types and sources of health care spending, the demographic factors associated with higher or lower levels of spending, and the impact of higher premiums and out-of-pocket costs on families and employers. It also discusses factors that influence health care spending growth, including the use of new medical technology, population changes, and changes in disease prevalence - and highlights some of the challenges policymakers face in trying to slow the rise in health care costs.

The updated primer is part of a series examining key health care programs and issues, including the uninsured, Medicaid, Medicare, and how private health insurance works. For more information go to:
http://www.kff.org/insurance/7670.cfm

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