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Friday, September 08, 2006
From the Wall Street Journal's weekly microeconomics summary:
"Health-care spending may be soaring, but the increased outlays over the last 40 years are worth the price in terms of extended U.S. life expectancy, a new study argues. That conclusion, reached by researchers at Harvard University and the University of Michigan." The researchers found that improved medical care results in 3.5 extra years of life expectancy at a cost of $19,900 per year. The[y] also found that as one gets older, gains in life expectancy are not as steep, and the costs start to pile up. "For example, a person aged 65 in 1960 could have expected to live an additional 14.4 years, whereas a 65-year-old in 2000 can expect an extra 18 years, a gain of 3.5 years. But the cost per year of life gained through medical care was, on average, $84,700. The cost between 1960 and 1970 was $75,100, whereas between 1990 and 2000 it was $145,000."
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