Americans have spent an average of $19,900 on medical care for each of the nearly seven years that have been added to our life expectancy from 1960 through 2000, which represents a good ROI, according to a new study published in the New England Journal of Medicine. Researchers from Harvard and the University of Michigan write, “On average, the increases in medical spending since 1960 have provided reasonable value…. The national focus on the rise in medical spending should be balanced by attention to the health benefits of this increased spending.”
A large portion of the increase in life expectancy from 69.9 years in 1960 to 76.87 years in 2000 is attributed to a decrease in cardiovascular disease, but is also due to fewer deaths from trauma and accidents, pneumonia, influenza, and cancer. The study found that “the average cost per year of life gained in 1960-2000 was approximately $31,600 at 15 years of age, $53,700 at 45 years of age, and $84,700 at 65 years of age. At 65 years of age, costs rose more rapidly than did life expectancy: the cost per year of life gained was $121,000 between 1980 and 1990 and $145,000 between 1990 and 2000.” The study’s authors note that “the spending increases in medical care for the elderly since 1980 are associated with a high cost per year of life gained.”
