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.

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.

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.

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

Graph and download economic data for Expenditures: Healthcare by Age: Under Age 25 (CXUHEALTHLB0402M) from 1984 to 2023 about healthcare, age, health, expenditures, and USA.

Graph and download economic data for Health Services Expenditures per Capita (HLTHSEPCHCSA) from 2000 to 2021 about healthcare, health, expenditures, per capita, services, and USA.

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 2022, the U.S. spent a total of 4.4 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 17 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.

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

Graph and download economic data for Total Private Construction Spending: Health Care in the United States (MPCV04XXS) from Feb 2002 to Jan 2025 about healthcare, health, expenditures, construction, private, and USA.

Graph and download economic data for Health Services Expenditures (HLTHSEEXPHCSA) from 2000 to 2021 about healthcare, health, expenditures, services, and USA.

Graph and download economic data for Medical Services Expenditures by Disease: Mental Illness , Blended Account Basis (MNINEIEXPBLEND) from 2000 to 2021 about mental health, disease, physicians, healthcare, medical, health, expenditures, services, and USA.

Graph and download economic data for Expenditures: Healthcare by Deciles of Income Before Taxes: Third 10 Percent (21st to 30th Percentile) (CXUHEALTHLB1504M) from 2014 to 2023 about healthcare, health, percentile, tax, expenditures, income, and USA.

Graph and download economic data for Total Construction Spending: Health Care in the United States (TLHLTHCONS) from Jan 2002 to Jan 2025 about health, expenditures, construction, and USA.

Graph and download economic data for Per Capita Personal Consumption Expenditures: Services: Health Care for United States (USPCEPCHLTHCARE) from 1997 to 2023 about healthcare, health, PCE, consumption expenditures, per capita, consumption, personal, services, 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.

In 2022, of the total 4.4 trillion U.S. dollars spent on U.S. health care expenditure, 30.4 percent went to hospital care, while 9.1 percent was spent on prescription drugs. This statistic shows the distribution of national health care expenditure in the U.S. from 2015 to 2022, by category.

In 2020, the total personal healthcare expenditure in the U.S. amounted to approximately, 3.37 trillion U.S. dollars, of which nearly 1.8 trillion U.S. dollars were spent on personal healthcare services for women. During the provided time interval, the spending on total personal healthcare was significantly higher for women compared to men.

United States US: Out-of-Pocket Health Expenditure: % of Private Expenditure on Health data was reported at 21.365 % in 2014. This records a decrease from the previous number of 21.927 % for 2013. United States US: Out-of-Pocket Health Expenditure: % of Private Expenditure on Health data is updated yearly, averaging 23.966 % from Dec 1995 (Median) to 2014, with 20 observations. The data reached an all-time high of 26.623 % in 1998 and a record low of 21.365 % in 2014. United States US: Out-of-Pocket Health Expenditure: % of Private Expenditure on Health data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s USA – Table US.World Bank: Health Statistics. Out of pocket expenditure is any direct outlay by households, including gratuities and in-kind payments, to health practitioners and suppliers of pharmaceuticals, therapeutic appliances, and other goods and services whose primary intent is to contribute to the restoration or enhancement of the health status of individuals or population groups. It is a part of private health expenditure.; ; World Health Organization Global Health Expenditure database (see http://apps.who.int/nha/database for the most recent updates).; Weighted average;

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

In 2022, U.S. out-of-pocket health care payments was reported to come to an average of 1,424.6 U.S. dollars per capita. In the U.S., especially out-of-pocket payments for prescribed drugs can be very high.This statistic depicts the per capita out-of-pocket health care payments in the United States from 1970 to 2022.