Snapshot: California addendum health care costs 101.(HEALTH CARE COSTS)

"Health spending in California reached $169 billion in 2004, or 11% of the state's economy. Spending grew 7.9% between 2003 and 2004, a growth rate similar to the national level, but well above overall inflation. While private health insurance and consumer out-of-pocket costs together account for the majority of health care spending, Medicare and Medicaid pay for over a third (36%) of health expenditures in California (Figure 5).

In California, health spending is a smaller proportion of the economy than it is nationally. California spends a smaller percentage of gross state product on health care than most states, including those with strong economies, such as New …