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Tuesday, 8 January, 2002, 22:29 GMT
US health costs reach record high
Doctor looking at x-ray
Americans spent $1.3 trillion on health care
By the BBC's Mike Fox in Washington

Healthcare costs in the United States have risen to a new high according to a new report from the government's Department of Health.

The figures from the year 2000 show that Americans are, on average, paying more than $4,600 a year in health insurance, and they are paying an average of nearly 20% more for prescription drugs.

The government report highlights the huge and growing burden of healthcare in the US - $1.3 trillion, or more than 13% of the country's gross domestic product (GDP), is spent on health, compared to an average of less than 9% in Europe.

Growth in GDP failed to keep pace with health costs.

Medical pills
Spending on prescription drugs was up by 17%

Overall, they rose by nearly 7%, the biggest increase since 1988.

And the rises are expected to continue.

The report says the costs of looking after an ageing population is driving the increase, along with a big increase in government spending on the Medicare Program that helps them - up nearly 6%, compared to two percent in 1999.

The growing spending on prescription drugs was also behind the increase, and health experts expect that to become a bigger issue in the years ahead, as drug companies produce more effective, but more expensive treatments for a wider range of diseases.

Failed reforms

The US system is notoriously expensive, and former president Bill Clinton tried and failed to push through radical reform of the health system.

So far, President George Bush has only announced a small expansion of the Medicaid Program to help poor people. Other priorities mean any major changes are unlikely any time soon.

See also:

08 Jan 02 | Business
Bush argues for budget deficit
22 Feb 00 | J-M
Medicare
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