introducing the new bea health care satellite strongaccountstrong.pdfVIP

January 2015 1 Introducing the New BEA Health Care Satellite Account By Abe Dunn, Lindsey Rittmueller, and Bryn Whitmire OTAL HEALTH CARE spending reached 17.4 tiple federal agencies (see the SURVEY OF CURRENT BUSI­ Tpercent of gross domestic product (GDP) in 2013, NESS articles (2007), (2008), (2009), (2012), (2013)). and that share is expected to continue to grow signifi­ The account builds on research by prominent health cantly, according to the Centers for Medicare and economists, recommendations from two reports of the Medicaid Services. Given this trend, it is critical to de­ National Academy of Sciences’ Committee on National velop an understanding of what those increased expen­ Statistics, and years of research both at BEA and the ditures represent. Are the increases attributable to Bureau of Labor Statistics (BLS). rising costs of treatment or more individuals receiving This first release of the HCSA presents preliminary medical care? What medical conditions account for the estimates that may be used to improve our under­ majority of spending? Which medical conditions see standing of health care spending trends and its effects the cost of treatment rising most rapidly? Do these on the U.S. economy. spending increases coincide with improvements in The principal contribution of the HCSA is that it treatment? Answers to these questions are necessary in redefines the commodity provided to patients by the order to formulate polic