There’s a lot of discussion about ways to “bend the healthcare cost curve.” What do people mean by that, and why do we need to bend it?
I like to answer that question by showing three simple charts.
1. The growth of Healthcare Expenses
2. Where we spend our healthcare dollars
3. What’s coming down the pike: the demographic timebomb
Source: U.S. Administration of Aging 2010a.
We’ve had a trippling of the share of healthcare costs as a percentage of GDP over the last 50 years, from 6% to