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    Summary of “Health Care Costs: What’s the Problem?”

    Figure 1

    The figure shows national health care spending (in billions of dollars) by spending type from 2000-2020. It shows that U.S. health care spending is steadily increased since 2000. Hospital Care trends each year as the highest level of spending type, followed by Physician and Clinical Service, then Prescription Drugs, then Other Personal Health Care, then Government Administration, Public Health Activities, and Net Cost of Health Insurance, and the smallest amount each year from Investments.

    Figure 1. National health care spending (in billions of dollars), 2000-2020. Note: Investments include research and development spending of drug companies and other manufacturers and providers of medical equipment and structures. Other Personal Health Care includes other professional and dental services, home health care, medical equipment and products, nursing care facilities and continuing care retirement communities, and other health, residential, and personal care.

    Sources: AAMC analysis of Centers for Medicare & Medicaid Services. National Health Expenditure Data. https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHeal…. Published Dec. 1, 2021. Accessed Feb. 24, 2022.

    Overview

    The figure shows stacked national health care spending by type of expenditure every two years from 2000-2020. It shows that U.S. health care spending has increased every two years since 2000. From bottom to top of stacked bar, the types of expenditures are Hospital Care; Physician and Clinical Services; Prescription Drugs; Other Personal Health Care; Government Administration, Public Health Activities, and Net Cost of Health Insurance; and Investments. Hospital Care; Physician and Clinical Services; Other Personal Health Care; and Government Administration, Public Health Activities, and Net Cost of Health Insurance were the types of expenditures that accounted for the largest shares of total spending. Prescription Drugs and Investments made up the smallest shares of total spending throughout the years.

    Values

    Year Spending ($ billions)
    2000 $1,366
    2002 $1,631
    2004 $1,894
    2006 $2,164
    2008 $2,402
    2010 $2,589
    2012 $2,783
    2014 $3,001
    2016 $3,306
    2018 $3,605
    2020 $4,124

    Presentation

    The stacked bar chart includes years, total national health care spending, and the distribution of types of expenditures. Years are represented at the base of each bar on the x-axis, listed horizontally in chronological order. The national health care spending total is listed at the top of each bar. Within each vertical bar are six types of expenditures stacked and summing to the national total for each year. Types of expenditures are represented by color blocks in each column designated as: Hospital care (dark blue), Physician and Clinical Service (gold), Prescription Drugs (light blue), Other Personal Health Care (dark blue with yellow dots), Government Administration, Public Health Activities, and Net Cost of Health Insurance (gold with medium-sized blue dots), Investments (gray).