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

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

Cross-country comparability in well being care worth progress: 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 varieties of worth indices are on the market? The authors cite three essential sorts:

  1. Economic system broad worth indices: Examples embody a GDP worth index
  2. Worth indices protecting all items and companies 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 adjustments in well being care costs.

Though they’re extensively 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. On condition that well being care is commonly offered by non-market producers equivalent 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 Providers (CMS)


The well being care spending progress charge 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 worth will increase in U.S. (55% of spending progress), this determine was a giant decrease for different international locations (48%). Additional:

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

Within the Determine beneath, spending progress 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 progress was quicker for well being care bought by public payers in comparison with these bought by households (i.e., out-of-pocket prices or non-public insurance coverage).

The total paper will be learn right here.



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