Magazine article The American (Washington, DC)

The Numbers on Health Care: Fact and Opinion Gathered from Polls and Academic Research

Magazine article The American (Washington, DC)

The Numbers on Health Care: Fact and Opinion Gathered from Polls and Academic Research

Article excerpt

Drug R&D Keeps Growing

Total Pharmaceutical Company Expenditures
on Research and Development

1980   2 *
1985   4
1990   8
1995  15
2000  26
2005  39

* in billion $

Source: Pharmaceutical Research and Manufacturers of America, Annual
Membership Survey, 2005.

Note: Table made from bar graph.

U.S. Spends Much More

JAPAN           7.9% of GDP  $2,249 *    $419 **
GERMANY    11.1% of GDP  $3,005      $549
CANADA      9.9% of GDP  $3,165      $862
FRANCE     10.1% of GDP  $3,159    $1,069
UNITED STATES  15.2% of GDP  $6,102    $2,337

* Healthcare Spending Per Capita

** Hospital Spending Per Inpatient Acute-Care Day

Selected countries shown. Dollar amounts adjusted for cost of living
using purchasing power parity. Sources: For healthcare, OECD data for
2004, except 2003 for Germany and Japan. For hospital stay, OECD data
for 2004, except 20113 for Canada, Germany, and Japan. Cited in "An
International Perspective: Why Is The U.S. Health rare System So
Expensive When The Outcomes Are Just OK?" Gerard F. Anderson, American
Enterprise Institute presentation, October 17, 2006. For percentage of
GDP, World Health Organization data, from World Health Report 2006, at
exchange rates.

Generics Take Majority Share

Generics' Proportion of U.S. Prescription Drug Market

1984   19%
1987   27%
1990   33%
1993   40%
1996   43%
2002   51%
2005   57%

Final two figures are projections. Sources: 1904-2000 data from IMS
Health, National Prescription Audit Plus, 2001; 2002-05 forecasts
based on a regression line calculation by National Economic
Research Associates.

Got You Covered?

More than eight in ten Americans ten
pollsters that they have some kind
of health insurance, most through their
employer or union.

Have health insurance                  82%
A plan through your or your spouse's
  employer or union                    62%
Currently not insured                  17%
Medicare                               17%
A plan you purchased yourself           9%
Other                                   6%
Medicaid                                5%

Source: The Henry J. Kaiser Family Foundation and the Harvard
School of Public Health, November 2006.

Where the Money Goes

NUMBER OF CENTS OUT
OF U.S. HEALTHCARE DOLLAR SPENT ...

Nursing Homes                   8.4 cents
Administrative and Net Costs    7.3 cents
Prescription Drugs             10.0 cents
Other                          22.5 cents
Hospital Care                  30.4 cents
Physician Services             21.3 cents

... IN EACH CATEGORY IN 2004

Source: C. Smith, C. Cowan, S. Heffle, et al., "National Health
Spending in 2004," Health Affairs, 25 (Jan/Feb 2006): 1, 186-196.

U.S. Life Expectancy

U.S. life expectancy is lower than that of many
other nations, and improvements in recent
decades lag behind as well. … 
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