Skip to main content

Health Care: Problems and Potential Lessons for Reform

T-HRD-92-23 Published: Mar 27, 1992. Publicly Released: Mar 27, 1992.
Jump To:
Skip to Highlights

Highlights

GAO discussed the U.S. health care system's problems and potential for reform. GAO noted that: (1) there is a growing consensus that the health care system needs change, particularly to address rapidly growing health care costs and access to care problems; (2) between 1980 and 1990, health care costs rose from 9.1 to 12.2 percent of the gross national product, and is projected to increase to over 16 percent by 2000; (3) the federal budget and American households experienced a 30-percent increase in health care spending during the last decade; (4) nearly 34 million people in the United States lack health insurance, and millions more are under-insured; (5) uncertainties about guaranteed availability and coverage continuity are eroding the traditional reliance on employment-based health insurance coverage; and (6) increasing competition among insurers for low-risk clients has limited the availability of affordable insurance for higher-risk populations. GAO also noted that: (1) common elements among successful domestic and foreign systems include universal coverage, a uniform provider-payment system, and expenditure targets and caps; and (2) the Rochester, New York, community appears to have successfully controlled rapid cost growth and access to care problems through health planning, a community ethic of cooperation among health care providers, and use of community rating rather than self-insurance and experience rating.

Full Report

Office of Public Affairs

Topics

Community health servicesEmployee medical benefitsFringe benefit costsHealth care cost controlHealth care costsHealth insuranceHealth insurance cost controlInsurance premiumsMedical economic analysisAccess to health care