Health Care Spending 101

By Lissa Wohltmann

If the success or failure of an entire health care system in the United States hinges on cost alone, then this country’s health care system is a dismal failure. In the 1960s, national health expenditures were nearly $28 billion. In 2007, they grew to $2,241 billion. Since the population grew by only 62 percent during that same time period, this means the increase in per capita dollars has ballooned from $148 to $7,421.¹ With all this money spent on health, one might think that the health indicators such as infant mortality and life expectancy would be impressive, yet on a global scale it is not. Therefore, if success of a health care system is indicative on its degree of value, than this would not be a dismal failure but merely a disappointing unsuccessful venture. Compared to other industrialized nations, the percent of gross domestic product for which health expenditures are responsible, is much higher. In 1960, the percent was only 5.1 while in 2006, the percentage shot up to 15.3. Today, health care is responsible for one-sixth of this country’s economy. There are three major reasons that might account for the rise in health care costs¹: people are investing in more health care resources, higher quality health care services including high technological equipment, and increased use of insurance and higher incomes led to high health care costs in the long run.

“If the supply of health care is fixed, its competitive price rises to such an extent that the consumer is worse off in the presence of insurance than in its absence.” ²  In 1960 only 48 percent of health care costs were paid by third-party payers. Forty-six years later, that percent increased to 85¹. The technological advances in combating diseases have no doubt had an impact in people’s health of this country, yet some wonder if the financial costs are worth it. In addition, people are using more health care services whether they are through tests, consultants, or increased amounts of medications. With all of the increased use of goods and services in the health care sector, coupled with an increased population, the success or failure of the health care system is vital to the success or failure of this country’s whole economy.



Just in case you want the resources

¹ Folland, S., Goodman, A.C., & Stano, M. (2010). The Economics of Health and Health Care (6th ed.). Upper Saddle River, NJ: Prentice Hall.
² Wright, D. J. (2006). Insurance and Monopoly Power in a Mixed Private/Public Hospital System. Economic Record, 82(259), 460-468.

Enjoy eating out again

By Lissa Wohltmann

I’ve been trying to last a week without dining on anything other than what I prepare. And when I say week, I really mean a five-day business week because I know every weekend I go out to breakfast either at Java Dave’s in Edmond, The Full Cup off of Classen Blvd. or some bagel place. It’s just one of those things I do after a run (runwalk) with friends, or a long bike ride. Everything tastes better after I’ve burned off several hundred calories. Plus, I know I’ve earned that naked bagel and coffee, or old-fashioned soy oatmeal – it’s all guilt free. Remember, doesn’t matter if you walk or run a mile, it’s still about 100 calories. Therefore, just one little 5K is a bagel and coffee. A nicer 10K lets me have a bagel, coffee, and a ton of fruit. Anything more…. well, you get the idea.

However, during the weekdays, I only get to run walk maybe 15 to 20 miles and cycle the same. Every Monday, I have delusions of grandeur and think I can make it through Friday by not eating out. By Wednesday, I’m back to saying, “OK, next Monday, I’ll start again.” There are always friends to lunch with, a spouse who likes to eat out, or some other tasty morsel to share with others. Therefore, I’ve decided to drop that crazy idea of only eating my preparations (plus, the fact that I hate to cook and would rather clean your bathroom, all helped me come to this conclusion). Instead I make sure that the restaurant where I spend my dollars offer good, healthy food. Contrary to popular belief, there are many eateries where you can enjoy healthy food in Oklahoma. Simply take a look at their menus to determine what foods they stock, then create your own meals. Think plants. Think fruits, veggies, whole grains, and legumes. Usually the chef will create something just for you. Avoid the cheeses and fried foods as much as possible unless you need to gain weight and you’ve got an extra heart you can spare. You can eat just about anywhere; you simply need to be creative.

Please share your restaurants and food concoctions with us all, below.