Health care costs are rising Health care costs have increased faster than inflation for decades ▣1960： the typical American spent 1/20 of her income on medical care ▣2010： 1 in every 6 dollars of the American economy is spent on medical care This amounts to a total of $2.6 trillion and $8,402 per person Bhattacharya,Hyde and Tu-HealthEconomics Bhattacharya, Hyde and Tu – Health Economics Health care costs are rising  Health care costs have increased faster than inflation for decades  1960: ◼ the typical American spent 1/20 of her income on medical care  2010: ◼ 1 in every 6 dollars of the American economy is spent on medical care ◼ This amounts to a total of $2.6 trillion and $8,402 per person