The expansion of health care insurance can drive the development of new technologies that can drive up health care spending. But it doesn't have to. By historical standards, health spending growth has been low since 2002. As the federal and state governments expand health insurance coverage, will this relatively low growth continue? The answer depends in large part on how investments in health care technology are encouraged. Health economists have shown that both insurance expansion and technology drive health spending upward. A few studies have teased out a deeper relationship between the two: By increasing the market for health care products (like prescription drugs and medical devices), coverage expansion encourages investment in health sector research and development.
