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The hidden costs of U.S. health care for consumers: A comprehensive analysis

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Topics: Out-of-Pocket | Spending

The Deloitte Center for Health Solutions released a study finding that Americans spent $363 billion, or 14.7 percent, more on health goods and services than the U.S. government reported in 2009.  The authors attribute these costs to uncounted expenses, including products and services not covered by insurance, alternative medicine, and uncompensated care for family members.  Deloitte estimates U.S. health spending totaled $2.83 trillion in 2009, up 26 percent since 2005.

From the report:

This study was jointly conducted by the Deloitte Center for Health Solutions and the Deloitte Center for Financial Services to gauge the total costs that U.S. consumers bear in funding health care products and services. We hypothesized that consumers spend more out of pocket than is typically reported in insurance industry or government reports. This hypothesis was confirmed: We found that the cost to consumers was $363 billion heretofore not recognized and, in many cases, these are supplemental to traditional costs for doctors, drugs, hospitals, and insurance coverage— no small matter. OOP medical costs include products and services not covered by insurance programs, purchases that are outside of conventional therapies and treatments, and care for others, which accounts for $199 billion of the total. With costs increasing at seven percent per year and now reaching $8,300 per capita, the U.S. health care system is the world’s most expensive. Also, in the past five years, health benefits costs have increased by 47 percent while wages have increased just 14 percent.

Full Report: The hidden costs of U.S. health care for consumers: A comprehensive analysis (PDF | 330 KB)exit disclaimer small icon 

Deloitte Center for Health Solutions. (2011). The hidden costs of U.S. health care for consumers: a comprehensive analysis.


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