A column in the Wall Street Journal (subscription required) reminds us of the growing percentage of the gross domestic product that health care spending represents. It states:
"When it comes to managing its citizens' health, the U.S. is a model of inefficiency.
Recently released figures from the U.S. Centers for Medicare and Medicaid Services show that in 2005, the U.S. health-care tab came to 16% of gross domestic product, more than any other country. France spends 10.5% of its GDP on health care, according to the Organization for Economic Cooperation and Development, while Japan spends 8%.
Americans don't seem to be getting much for the money. In both France and Japan, the average life expectancy is higher than in the U.S., and the infant mortality rate is lower. This is true in most other OECD countries, so green tea and red wine don't explain it all.
This is a drag on U.S. companies, raising their costs, pulling money out of consumer pockets and giving overseas firms a competitive edge.
Now, Washington and state capitals are promising to refocus on the problem, and Bank of America strategist Joseph Quinlan says the payoff could be huge. Bringing health-care spending down to the same percentage of GDP as in France, for instance, could arguably free up $600 billion a year."
Gee, how would that be spent? On another surge? Or on meaningful health care reform?
Posted by schwitz at January 26, 2007 09:00 AM | TrackBack