Total Government* Healthcare Spending Increases are Staggering —
Up 7x as % of GDP Over Five Decades vs. Education Spending, Only Up 0.6x
USA Total Government Healthcare vs. Education Spending as % of GDP, 1960 — 2009
Spending as % of GDP
——Total Government (Federal + State + Local) Spending on Healthcare
\ ’ ——Total Government (Federal + State + Local) Spending on Education
0% oT
1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008
Note: *Total government spending on healthcare includes Medicare, Medicaid and other programs such as federal
employee and veteran health benefits; total government spending on education includes spending on pre-primary through
KP tertiary education programs. Source: Dept. of Education, Dept. of Health & Human Services. www.kpcb.com
USA Inc. | Income Statement Drilldown 105
Since Their Creation in 1965, Medicare + Medicaid Have Grown
to 35% of Total USA, Inc. Healthcare Spending in 2008 from 0%
USA Total Healthcare Spending by Funding Source, 1960 vs. 2009
1960 2009 Total Healthcare Total Healthcare Spending = $187B* Spending = $2.5T*
Other Private Funds
Consumer Out-of-pocket.
ther Government Payments.
Funds**
Other Private Funds
Consumer Out-of-pocket Payments
edicaid (Federal + State +
Local)
Private Health
Insurance Private Health
Insurance
Other Government Funds**
Note: *Adjusted for inflation, in 2005 dollars. ** Other government funds include those from Dept. of Defense, Veterans’ Administration and federal funding P for healthcare research and public health activities. Source: U.S. Department of Health & Human Services. (@E) www.kpcb.com USA Inc. | Income Statement Drilldown 106
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