In 2023, U.S. national health expenditure as a share of its gross domestic product (GDP) reached 17.6 percent, this was an increase 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 ** 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 ** 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.

The average for 2021 based on 181 countries was 7.21 percent. The highest value was in Afghanistan: 21.83 percent and the lowest value was in Brunei: 2.2 percent. The indicator is available from 2000 to 2022. Below is a chart for all countries where data are available.

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 ********* of the national gross domestic product.

Graph and download economic data for Government current expenditures: Health (G160271A027NBEA) from 1959 to 2023 about health, expenditures, government, GDP, and USA.

Per capita national health expenditures in the United States have increased significantly since 1960. In 2023, national health expenditures amounted to **** thousand U.S. dollars per capita. For comparison, in 1960, per capital expenditures for health stood at *** 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.

U.S. healthcare spending per capita for 2022 was $12,434, a 3.63% increase from 2021.

<ul style='margin-top:20px;'>

<li>U.S. healthcare spending per capita for 2021 was <strong>$11,999</strong>, a <strong>2.8% increase</strong> from 2020.</li>
<li>U.S. healthcare spending per capita for 2020 was <strong>$11,673</strong>, a <strong>10.68% increase</strong> from 2019.</li>
<li>U.S. healthcare spending per capita for 2019 was <strong>$10,546</strong>, a <strong>3.57% increase</strong> from 2018.</li>
</ul>Current expenditures on health per capita in current US dollars. Estimates of current health expenditures include healthcare goods and services consumed during each year.

The average for 2021 based on 19 countries was 7.85 percent. The highest value was in Brazil: 9.89 percent and the lowest value was in Haiti: 3.48 percent. The indicator is available from 2000 to 2022. Below is a chart for all countries where data are available.

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 2024, around one ***** of all health expenditure is paid by private insurance. Public insurance programs Medicare and Medicaid accounted for ** and ** 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 ** thousand U.S. dollars, a significant amount considering the average U.S. personal income is around ** 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 *** thousand dollars. Physician services, dental services and prescription drugs account for the largest proportion of out-of-pocket expenditures for U.S. residents.

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.

The largest proportion of household expenditure on healthcare goods and services in Mexico is allocated towards medication, accounting for more than ** percent of the total as of 2023. This is as much as all three following categories added together. Hospital services and medical visits account for around ** percent each, while support goods such as soap, disinfectant, and toothpaste make up approximately **** percent of the total. The cost of medication Mexico ranks second among seven Latin American economies in terms of medicine prices, with an average cost of **** U.S. dollars per medication in 2024. In comparison, the average price in Peru was *** U.S. dollars. Cardiovascular medicines such as those for hypertension and heart disease were particularly expensive, averaging **** U.S. dollars per unit. Additionally, medication for respiratory diseases, mental and behavioral disorders, and those targeting the musculoeskeletal system were also among the costliest, with averages ranging from ** to ** U.S. dollars. Healthcare expenditure Mexico's overall healthcare spending as a percentage of GDP remains relatively low. In 2023, healthcare expenditure represented an estimated *** percent of the country's GDP, a decrease from previous years. This figure is significantly lower than that of other OECD countries, with the United States allocating approximately **** percent of its GDP to health care during that year. Within Latin America, Mexico has one of the lowest healthcare expenditures as a share of its GDP.

Health expenditure in the U.S. has been a hotly debated topic among political parties, especially on the verge of presidential elections. Health expenditures in the U.S. have been increasing over time and are projected to keep increasing. As of 2023, the U.S. spent a total of *** trillion U.S. dollars on healthcare. U.S. health expenditure in comparison The U.S has some of the highest expenditures for health care in the world. With a total health spending of roughly ** percent of the country’s GDP, the U.S. has far surpassed the country with the second highest health expenditure as a share of GDP, Germany. The United States, despite having a mixed method of healthcare financing and insurances, also has one of the highest shares of domestic governmental health expenditures. U.S. health care payers There are several different governmental and non-governmental agencies that are responsible for health care funding and payments in the United States. Currently, private insurance and Medicare are the two largest payers of U.S. health care. Direct health care costs are not the only things that these payers are responsible for. They may also be partly responsible for prescription drug costs. Again, private insurance and Medicare are the two largest payers of prescription drug costs in the U.S. Among all the payers of health care costs in the U.S., Medicare has experienced the highest level of health spending increases in recent years.

In 2021, spending on health represented approximately six percent of Peru's gross domestic product (GDP). During the decade analyzed, healthcare expenditure as share of GDP in the South American country remained relatively stable, ranging from five to six percent. In comparison, that year Cuba's healthcare spending corresponded to 14 percent of its GDP, the highest value reported among Latin American and Caribbean countries.

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 Q1 2025 about social assistance, value added, health, private industries, education, percent, services, private, industry, GDP, and USA.

United States - Contributions to percent change in real gross domestic product: Personal consumption expenditures: Services: Health care was 0.62000 Percentage Points at Annual Rate in January of 2024, according to the United States Federal Reserve. Historically, United States - Contributions to percent change in real gross domestic product: Personal consumption expenditures: Services: Health care reached a record high of 0.98000 in January of 2021 and a record low of -0.82000 in January of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Contributions to percent change in real gross domestic product: Personal consumption expenditures: Services: Health care - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for Contributions to percent change in real gross domestic product: Personal consumption expenditures: Services: Health care (DHLCRY2A224NBEA) from 1930 to 2024 about contributions, health, PCE, consumption expenditures, consumption, percent, personal, services, real, GDP, and USA.

Graph and download economic data for Contributions to percent change in real gross domestic product: Personal consumption expenditures: Services: Health care (DHLCRY2Q224SBEA) from Q2 1959 to Q1 2025 about contributions, health, PCE, consumption expenditures, consumption, percent, personal, services, real, GDP, and USA.

Vietnam healthcare spending per capita for 2022 was $188.90, a 12.39% increase from 2021.

<ul style='margin-top:20px;'>

<li>Vietnam healthcare spending per capita for 2021 was <strong>$168.08</strong>, a <strong>9.78% increase</strong> from 2020.</li>
<li>Vietnam healthcare spending per capita for 2020 was <strong>$153.10</strong>, a <strong>10.55% decline</strong> from 2019.</li>
<li>Vietnam healthcare spending per capita for 2019 was <strong>$171.15</strong>, a <strong>5.66% increase</strong> from 2018.</li>
</ul>Current expenditures on health per capita in current US dollars. Estimates of current health expenditures include healthcare goods and services consumed during each year.

Tanzania healthcare spending per capita for 2022 was $35.65, a 5.1% decline from 2021.

<ul style='margin-top:20px;'>

<li>Tanzania healthcare spending per capita for 2021 was <strong>$37.56</strong>, a <strong>18.42% increase</strong> from 2020.</li>
<li>Tanzania healthcare spending per capita for 2020 was <strong>$31.72</strong>, a <strong>20.66% decline</strong> from 2019.</li>
<li>Tanzania healthcare spending per capita for 2019 was <strong>$39.98</strong>, a <strong>3.15% decline</strong> from 2018.</li>
</ul>Current expenditures on health per capita in current US dollars. Estimates of current health expenditures include healthcare goods and services consumed during each year.

Context

This indicator calculates the average expenditure on health per person. It contributes to understand the health expenditure relative to the population size facilitating international comparison. The Organization for Economic Co-operation and Development (OECD) defines current health spending as:

Health spending measures the final consumption of health care goods and services (i.e. current health expenditure) including personal health care (curative care, rehabilitative care, long-term care, ancillary services and medical goods) and collective services (prevention and public health services as well as health administration), but excluding spending on investments. Health care is financed through a mix of financing arrangements including government spending and compulsory health insurance (“Government/compulsory”) as well as voluntary health insurance and private funds such as households’ out-of-pocket payments, NGOs and private corporations (“Voluntary”). This indicator is presented as a total and by type of financing (“Government/compulsory”, “Voluntary”, “Out-of-pocket”) and is measured as a share of GDP, as a share of total health spending and in USD per capita (using economy-wide PPPs).

OECD (2020), Health spending (indicator). doi: 10.1787/8643de7e-en (Accessed on 19 September 2020)