How has the source of funds used to pay for americans’ health care changed in the last 50 years?

Over the past 57 years, there have been major shifts in who pays for hospital care, physician services, long-term care, prescription drugs, and other health care services and products in the US. In 1960, only half of hospital care was paid for by insurance, and 96% of spending on prescription drugs came out of the consumer’s pocket. The creation of Medicare and Medicaid in 1966 and the rise of private insurance in the following decades led to increasing shares of spending paid for by insurance and decreases in the share of out-of-pocket spending.

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