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Kaiser Daily Health Policy Report
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Health Care Marketplace | Health Care Costs Put U.S. at Disadvantage in Global Economy, According to Business Group Report
[Mar 12, 2009]

      The U.S. health care system puts the country at a disadvantage in the global economy because of high costs and low standards in the delivery of care, according to a study to be released on Thursday by the Business Roundtable, the AP/Houston Chronicle reports. Researchers for Business Roundtable, which represents CEOs of major companies, gathered life expectancy and death rate data and cholesterol and blood pressure readings among residents of five comparably advanced countries -- Canada, France, Germany, Japan and the United Kingdom -- and three developing competitors -- Brazil, China and India. The researchers then analyzed the data and factored in the costs associated with the four health measures on a 100-point "value" scale. The researchers said it is the first time such an analysis has been done.

The analysis found that the U.S. ranked 23 points behind the five advanced countries, all of which provide health care to their citizens, the AP/Chronicle reports. According to the study, the annual health care expense in the U.S. is $2.4 trillion and Americans spent $1,928 per capita, GDP-adjusted in 2006 on health care, which is nearly two-and-a-half times more than in any of the other advanced countries. In addition, a cost-benefit analysis found that the U.S. ranked 46 points behind the systems of the three developing countries.

The authors said that the high level of health care spending in the U.S. drew resources away from other sectors of the economy and added that the system does not do enough to ensure a healthier working population. Arnold Milstein, one of the study's authors, said, "Spending more would not be a problem if our health scores were proportionately higher," adding, "What this study shows is that the U.S. is not getting higher levels of health and quality of care." Cigna CEO H. Edward Hanway said, "What's important is that we measure and compare actual value — not just how much we spend on health care, but the performance we get back in return," adding, That's what this study does, and the results are quite eye-opening."

The report did not endorse a government-run health care system. According to the AP/Chronicle, the CEOs that are part of the group "believe health care for U.S. workers and their families should stay in private hands, with a government-funded safety net for low-income people" (Alonso-Zaldivar, AP/Houston Chronicle, 3/12).

Online An executive summary of the study is available online (.pdf).


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