Reduction Needed In Percentage Of GDP Spent On Health Care, Opinion Piece States

Main Category: Public Health
Also Included In: Primary Care / General Practice
Article Date: 30 Jan 2007 - 2:00 PDT

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"Washington and state capitals are promising to refocus" on the issue of health care spending, and the "payoff could be huge," columnist Justin Lahart writes in a Wall Street Journal opinion piece. According to a report recently released by CMS, U.S. health care spending in 2005 accounted for about 16% of GDP, a higher percentage than any other nation, Lahart writes, adding, "This is a drag on U.S. companies, raising their costs, pulling money out of consumer pockets and giving overseas firms a competitive edge." Lahart writes, "Bringing health care spending down to the same percentage of GDP as in France" -- 10.5% -- "could arguably free up $600 billion a year." The "downside would be for health care companies," Lahart writes. He concludes, "No matter what, if health care's share of GDP goes down, spending on health care will grow more slowly than GDP," and "investors' habit of paying more for the shares of health care companies would need a rethink" (Lahart, Wall Street Journal, 1/25).

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