Government Healthcare Spending Has Grown 7‑fold vs. Education Over Five Decades

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 HOUSE_OVERSIGHT_020894