Total Government* Healthcare Spending Increases are Staggering – Up 7x as % of GDP Over Five Decades vs. Education Spending, Only Up 0.6x
USA Total Government Healthcare vs. Education Spending as % of GDP, 1960 – 2009
[Chart Y-Axis: Spending as % of GDP, 0% to 8%]
[Chart X-Axis: 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008]
[Data Point Annotation 1960: 1.2%]
[Data Point Annotation 2009: 8.2%]
— Total Government (Federal + State + Local) Spending on Healthcare
— Total Government (Federal + State + Local) Spending on Education
Note: *Total government spending on healthcare includes Medicare, Medicaid and other programs such as federal employee and veteran health benefits; total government spending on education includes spending on pre-primary through tertiary education programs. Source: Dept. of Education, Dept. of Health & Human Services.
KPCB www.kpcb.com USA Inc. | Income Statement Drilldown 105
Since Their Creation in 1965, Medicare + Medicaid Have Grown to 35% of Total USA, Inc. Healthcare Spending in 2008 from 0%
USA Total Healthcare Spending by Funding Source, 1960 vs. 2009
1960
Total Healthcare Spending = $187B*
Other Private Funds 7%
Other Government Funds** 25%
Consumer Out-of-pocket Payments 47%
Private Health Insurance 21%
2009
Total Healthcare Spending = $2.5T*
Other Private Funds 8%
Medicare 20%
Medicaid (Federal + State + Local) 15%
Other Government Funds** 13%
Private Health Insurance 32%
Consumer Out-of-pocket Payments 12%
Note: *Adjusted for inflation, in 2005 dollars. ** Other government funds include those from Dept. of Defense, Veterans' Administration and federal funding for healthcare research and public health activities. Source: U.S. Department of Health & Human Services.
KPCB www.kpcb.com USA Inc. | Income Statement Drilldown 106
HOUSE_OVERSIGHT_020894
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