GROWTH OF U.S. HEALTH CARE SPENDING.

A conference paper about the growth of the health care spending of the U.S. is presented. It discusses several theories that explain the country's historical growth in medical spending, which include the aging population and the technological innovations. It considers how the continuous growth of the elderly population will affect medical spending while the current subsidy structures and input prices remain constant. It presents a micro-economic theory that is said to be behind the medical spending model.