Medical Technology and Growth in Healthcare Costs – CBO

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Medical Technology and Growth in Healthcare Costs – CBO

How does medical technology contribute to growth in the cost of healthcare? Technology-related changes in medical practice are estimated by the Congressional Budget Office (CBO) to account for about half of the long-term growth in health care spending. CBO pub. 2764 Technological Change and the Growth of Health Care Spending also discusses the contribution to rising costs from population aging, health insurance, rising personal income, price increases, defensive medicine and more. The report’s 75-year forecast predicts health spending will reach 49% of GDP at the rate we’re going in the US. One of our favorite classic reports, released January 2008.