Reducing Costs While Improving the U.S. Health Care System: The Health Care Reform Pyramid

Source: Deloitte LLP, January 15, 2009

For the past 30 years, U.S. health care costs have grown by at least two percent more than the nation’s overall Gross Domestic Product (GDP). In 2008, health care cost increases will top 7.9 percent, with disproportionately adverse impacts on states as they grapple with explosive Medicaid costs, large employers who bear the burden for other employers who don’t provide health benefits, and individuals who can no longer afford needed care. Further, the U.S. system’s quality of care seems unrelated to its costs, as evidenced by estimates of 100 thousand deaths annually due to errors and adults receiving recommended care only 55 percent of the time.

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