This observation is documented in F

This observation is documented in Figure 10.2 which plots their health expenditures relative to GDP over time. These four countries have very different systems for financing health care than the United States has. In Particular, health care coverage is not provided by employers as it is in the United States, and the government plays a much larger role in setting prices. Thus, as we seek explanations for the growth rate of health care expenditures in the United States, we should not focus exclusively on factors that care idiosyncratic to the US system. The following discussion is based on the work of Newhouse, who attempted to calculate how much each of the following factors has contributed to this growth rate.