Does the Great Recession Contribute to the Convergence of Health Care Expenditures in the US States?

Jesús Clemente,Angelina Lázaro-Alquézar,Antonio Montañés

doi:10.3390/ijerph17020554

Jesús Clemente, Angelina Lázaro-Alquézar + Show 1 more

Open Access

https://doi.org/10.3390/ijerph17020554

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Abstract

This paper examines whether the Great Recession has altered the disparities of the US regional health care expenditures. We test the null hypothesis of convergence for the US real per capita health expenditure for the period 1980–2014. Our results indicate that the null hypothesis of convergence is clearly rejected for the total sample as well as for the pre-Great Recession period. Thus, no changes are found in this regard. However, we find that the Great Recession has modified the composition of the estimated convergence clubs, offering a much more concentrated picture in 2014 than in 2008, with most of the states included in a big club, and only 5 (Nevada, Utah, Arizona, Colorado and Georgia) exhibiting a different pattern of behavior. These two estimated clubs diverge and, consequently, the disparities in the regional health sector have increased.

Highlights

Economists agree that the Great Recession has been one of the deepest and most extensive economic downturns in recent history
The Great Recession has had an important impact on most sectors of the US economy, especially
The Great Recession has had an important impact on most sectors of the US economy, especially in health care expenditure given its dependence of the evolution of the economy

Summary

Introduction

Economists agree that the Great Recession has been one of the deepest and most extensive economic downturns in recent history. The health sector did not escape this effect and suffered an immediate and long-lasting impact. National health spending grew by 4.6% in 2008 and 3.9% in 2009. After 2009, the growth rates of health spending remained below 4% for five consecutive years, with the remarkable minimum of 2.9% in 2013. This behavior meant that the health expenditure share over GDP remained unchanged until 2014. This decline in US health spending has been quite heterogeneous.

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