Spending on health care has consistently grown faster than the rest of the U.S. economy. What’s behind this trend is less certain, though. Economists point to two causes: the prevalence of diseases and conditions afflicting the U.S. population, or the rising costs of treating diseases.
New research from American University Associate Professor Martha Starr and Virginia Tech Research Professor Ana Aizcorbe shows it is the latter, with higher prices for treatment accounting for 70 percent of growth in health care spending.