One of my favorite bloggers, Dr. Paul Hsieh (We Stand Firm), posts a Hospital Bill From 1960 saying: "One of my friends just sent me this copy of a hospital bill from 1960. This was for a relative of hers who had delivered a baby..." It shows that delivering a baby in 1960 cost $230.
This example demonstrates the devastating effects of general dollar inflation combined with medical inflation due to government intervention in the health care market. Dollar inflation is due to the massive creation of dollars not backed by hard assets like gold and silver and raises the price of everything more than otherwise. Medical inflation, which has outpaced even dollar inflation, is due to government intervention in the health care market which takes many forms. For example, the government creates incentives and mandates for employers to sponsor heavily regulated and uneconomical third party payer programs.
His website is a great resource for advocates of free market health care or anyone trying to understand the causes and solutions to the government caused health care crisis.