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Income, Insurance, And Technology: Why Does Health Spending Outpace Economic Growth
Health Affairs, 09/15/09

Smith S et al. – The authors estimate that medical technology explains 27–48 percent of health spending growth since 1960—a smaller percentage than earlier estimates. Income (gross domestic product, or GDP) growth plays a critical role, primarily through the actions of governments and employers on behalf of pools of consumers. The contribution of insurance is likely to differ, with less of a push from increasing generosity of coverage and more of a push from changes in provider payment.

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