Globally, continuously and cumulatively increasing health expenditures continue to create a serious burden on the public budgets of countries. This situation raises concerns among policy makers in terms of financial sustainability and frequently causes it to be on their agendas. In this context, many studies have been conducted on the increase in health expenditures, but a common consensus has not been reached. At this point, Baumol brought a different perspective to this dramatic increase in health expenditures. According to Baumol, the most striking aspect of this increase is that it is even higher than the inflation rate. He argues that the reason for this is the productivity differences between sectors. When we divide the economy into two as stagnant and progressive sectors, the progressive sector can increase wages as much as the productivity increase rate. This will not cause a change in unit costs. However, since labor productivity cannot be achieved in stagnant sectors and wage levels are determined by the progressive sector, wage increases will cause unit costs to increase. This situation is referred to as Baumol's cost disease. This study investigates whether Baumol's cost disease exists specifically in the health sector in EU countries. In this regard, as a result of the analysis made with the data sets, it was concluded that Baumol's assumptions are valid in EU countries and that EU countries suffer from Baumol's cost disease.