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Fixing Health Insurance Starts with Managing Inefficiencies

Healthcare costs in the U.S. have soared from $240 billion in 1980 to $3.5 trillion in 20171. The 10% CAGR in spend has shot far above economic growth and has eaten into wage growth, as employers struggle to fund health plans for their workers. Today, healthcare accounts for 18% of U.S. GDP and costs about $10,000 per capita in PPP terms – approximately double the OECD average.


Unfortunately, the additional investment is not rewarded with superior health outcomes. The U.S. has one of the highest rates of obesity among Organisation for Economic Co-operation and Development (OECD) countries and double the infant mortality rate of the OECD average.

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