In 2022, U.S. national health expenditure as a share of its gross domestic product (GDP) reached 17.3 percent, this was a decrease on the previous year. The United States has the highest health spending based on GDP share among developed countries. Both public and private health spending in the U.S. is much higher than other developed countries. Why the U.S. pays so much moreWhile private health spending in Canada stays at around three percent and in Germany under two percent of the gross domestic product, it is nearly nine percent in the United States. Another reason for high costs can be found in physicians’ salaries, which are much higher in the U.S. than in other wealthy countries. A general practitioner in the U.S. earns nearly twice as much as the average physician in other high-income countries. Additionally, medicine spending per capita is also significantly higher in the United States. Finally, inflated health care administration costs are another of the predominant factors which make health care spending in the U.S. out of proportion. It is important to state that Americans do not pay more because they have a higher health care utilization, but mainly because of higher prices. Expected developmentsBy 2031, it is expected that health care spending in the U.S. will reach nearly one fifth of the nation’s gross domestic product. Or in dollar-terms, health care expenditures will accumulate to about seven trillion U.S. dollars in total.

Among OECD member countries, the United States had the highest percentage of gross domestic product spent on health care as of 2023. The U.S. spent nearly 16 percent of its GDP on health care services. Germany, France and Japan followed the U.S. with distinctly smaller percentages. The United States had both significantly higher private and public spending on health compared with other developed countries. Why compare OECD countries?OECD stands for Organization for Economic Co-operation and Development. It is an economic organization consisting of 38 members, mostly high-income countries and committed to democratic principles and market economy. This makes OECD statistics more comparable than statistics of developed and undeveloped countries. Health economics is an important matter for the OECD, even more since increasing health costs and an aging population have become an issue for many developed countries. Health costs in the U.S.  A higher GDP share spent on health care does not automatically lead to a better functioning health system. In the case of the U.S., high spending is mainly because of higher costs and prices, not due to higher utilization. For example, physicians’ salaries are much higher in the U.S. than in other comparable countries. A doctor in the U.S. earns almost twice as much as the average physician in Germany. Pharmaceutical spending per capita is also distinctly higher in the United States. Furthermore, the U.S. also spends more on health administrative costs compare to other wealthy countries.

Current expenditures on health per capita in current US dollars. Estimates of current health expenditures include healthcare goods and services consumed during each year.

This statistic shows a forecast of the U.S. national health expenditure as a percentage of GDP from 2023 to 2032. By 2032, this share is expected to increase up to nearly one-fifth of the national gross domestic product.

Graph and download economic data for Government current expenditures: Federal: Health (G160661A027NBEA) from 1959 to 2023 about health, expenditures, federal, government, GDP, and USA.

United States US: Health Expenditure: Private: % of GDP data was reported at 8.862 % in 2014. This records an increase from the previous number of 8.853 % for 2013. United States US: Health Expenditure: Private: % of GDP data is updated yearly, averaging 8.434 % from Dec 1995 (Median) to 2014, with 20 observations. The data reached an all-time high of 8.985 % in 2009 and a record low of 7.132 % in 1997. United States US: Health Expenditure: Private: % of GDP data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United States – Table US.World Bank.WDI: Health Statistics. Private health expenditure includes direct household (out-of-pocket) spending, private insurance, charitable donations, and direct service payments by private corporations.; ; World Health Organization Global Health Expenditure database (see http://apps.who.int/nha/database for the most recent updates).; Weighted average;

Graph and download economic data for Gross Domestic Product: Health Care and Social Assistance (62) in New York (NYHLTHSOCASSNQGSP) from Q1 2005 to Q3 2024 about healthcare, social assistance, health, GSP, private industries, NY, education, services, private, industry, GDP, and USA.

Per capita national health expenditures in the United States have increased significantly since 1960. In 2022, national health expenditures amounted to 13.4 thousand U.S. dollars per capita. For comparison, in 1960, per capital expenditures for health stood at 146 U.S. dollars. According to recent data, the U.S. has some of the highest health care costs in the world.

Health care expenditures With increased per capita health expenditures, U.S. health care expenditures as a percentage of the gross domestic product (GDP) have also increased over the decades. Among developed countries, the U.S. has the highest health expenditure as a proportion of the GDP. The high level of health costs in the U.S. may be attributable to high costs for prescribed drugs and health services as well as high administrative costs.

Cost areas A large proportion of all health care spending in the U.S. is attributable to hospital care and physician and clinical services. In recent years, many sectors have seen an increase in health care spending. However, data suggests that prescription drugs have seen some of the most dramatic increases in spending in recent years. The annual prescription drug expenditures in the U.S. reached an all-time high by the end of 2022.

Graph and download economic data for Gross Domestic Product: Ambulatory Health Care Services (621) in the United States (USAMBHCNGSP) from 1997 to 2023 about ambulatory, assistance, healthcare, social assistance, health, GSP, private industries, education, services, private, industry, GDP, and USA.

This statistic shows a forecast of the U.S. total national health expenditure from 2023 to 2032. For 2032, the total health expenditure of the United States is forecasted to reach some 7.7 trillion U.S. dollars.

The average for 2021 based on 12 countries was 7.72 percent. The highest value was in Brazil: 9.89 percent and the lowest value was in Venezuela: 4.04 percent. The indicator is available from 2000 to 2022. Below is a chart for all countries where data are available.

United States GDP: 2017p: PCE: Services: Health Care data was reported at 2,814.987 USD bn in 2024. This records an increase from the previous number of 2,667.007 USD bn for 2023. United States GDP: 2017p: PCE: Services: Health Care data is updated yearly, averaging 2,155.249 USD bn from Dec 2007 (Median) to 2024, with 18 observations. The data reached an all-time high of 2,814.987 USD bn in 2024 and a record low of 1,753.978 USD bn in 2007. United States GDP: 2017p: PCE: Services: Health Care data remains active status in CEIC and is reported by Bureau of Economic Analysis. The data is categorized under Global Database’s United States – Table US.A024: NIPA 2023: GDP by Expenditure: Chain Linked 2017 Price: Annual.

The global current health expenditure as a share of the GDP in was forecast to continuously increase between 2024 and 2029 by in total 0.2 percentage points. After the seventh consecutive increasing year, the share is estimated to reach 6.31 percent and therefore a new peak in 2029. According to Worldbank health spending includes expenditures with regards to healthcare services and goods. It is depicted here in relation to the total gross domestic product (GDP) of the country or region at hand.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in up to 150 countries and regions worldwide. All indicators are sourced from international and national statistical offices, trade associations and the trade press and they are processed to generate comparable data sets (see supplementary notes under details for more information).Find more key insights for the current health expenditure as a share of the GDP in countries like North America and the Americas.

Graph and download economic data for Real Gross Domestic Product: Health Care and Social Assistance (62) in the District of Columbia (DCHLTHSOCASSRQGSP) from Q1 2005 to Q3 2024 about DC, healthcare, social assistance, health, GSP, private industries, education, services, private, real, industry, GDP, and USA.

Graph and download economic data for Value Added by Industry: Educational Services, Health Care, and Social Assistance: Health Care and Social Assistance as a Percentage of GDP (VAPGDPHCSA) from Q1 2005 to Q3 2024 about social assistance, value added, health, private industries, education, percent, services, private, industry, GDP, and USA.

Graph and download economic data for Real Gross Domestic Product: Health Care and Social Assistance (62) in the United States (USHLTHSOCASSRGSP) from 1997 to 2023 about healthcare, social assistance, health, GSP, private industries, education, services, private, real, industry, GDP, and USA.

In 2021, the country with the highest share of health spending relative to its gross domestic product (GDP) in Latin America and the Caribbean was Cuba, with 14 percent. It was followed by Argentina, Brazil, El Salvador, Nicaragua, and Panama, with approximately 10 percent of its GDP spent on healthcare, each. Meanwhile, Haiti reported the lowest health spending relative to its GDP in the region that year, which reached the equivalent of around three percent.

The United States has the highest expenditure on health care per capita globally. However, the U.S. has an unique way of paying for their health care where a majority of the expenditure falls upon private insurances. In FY 2023, around one third of all health expenditure is paid by private insurance. Public insurance programs Medicare and Medicaid accounted for 22 and 18 percent, respectively, of health expenditure during that same year.

U.S. health care system

Globally health spending has been increasing among most countries. However, the U.S. has the highest public and private per capita health expenditure among all countries globally, followed by Switzerland. As of 2020, annual health care costs per capita in the United States totaled to over 12 thousand U.S. dollars, a significant amount considering the average U.S. personal income is around 54 thousand dollars.

Out of pocket costs in the U.S.

Aside from overall high health care costs for U.S. residents, the total out-of-pocket costs for health care have been on the rise. In recent years, the average per capita out-of-pocket health care payments have exceeded one thousand dollars. Physician services, dental services and prescription drugs account for the largest proportion of out-of-pocket expenditures for U.S. residents.

Graph and download economic data for Chain-Type Quantity Index for Real GDP: Health Care and Social Assistance (62) in the United States (USHLTHSOCASSQGSP) from 1997 to 2023 about healthcare, social assistance, quantity index, health, GSP, private industries, education, services, private, industry, GDP, and USA.

In 2023, the United States had the highest per capita health expenditure among OECD countries. At that time, per capita health expenditure in the U.S. amounted over 13,432 U.S. dollars, significantly higher than in Switzerland, the country with the second-highest per capita health expenditure. Norway, Germany and Austria are also within the top five countries with the highest per capita health expenditure. The United States also spent the highest share of it’s gross domestic product on health care, with 16.5 percent of its GDP spent on health care services. Health Expenditure in the U.S. The United States is the highest spending country worldwide when it comes to health care. In 2022, total health expenditure in the U.S. exceeded four trillion dollars. Expenditure as a percentage of GDP is projected to increase to approximately 20 percent by the year 2031. Distribution of Health Expenditure in the U.S. Health expenditure in the United States is spread out across multiple categories such as nursing home facilities, home health care, and prescription drugs. As of 2022, the majority of health expenditure in the United States was spent on hospital care, accounting for a bit less than one third of all health spending. Hospital care was followed by spending on physician and clinical services which accounted for 20 percent of overall health expenditure.