Depending on the state or jurisdiction, between 8 percent (District of Columbia) and 20 percent (West Virginia) of gross state product (GSP) is spent on health care. From 1991 to 2004, the average annual percent growth in health care expenditures per capita in the United States was 5.5 percent with higher rates in some states (e.g., 7.8 percent in Maine). While these spending figures are frequently reported, relatively little is known about what comprises these expenditures. Gaps in that knowledge limit the ability to identify opportunities to address rising health care costs. In response to this lack of transparency in health care spending, states are actively seeking robust information about the costs and performance of their state’s health care delivery system. One key source of information to support transparency and general knowledge of the health care marketplace is the development of All-Payer Claims Databases (APCDs).
