Government health expenditures in the United States account for a larger share of gross domestic product (11.2% in 2013) than do total health expenditures in any other nation. Conclusions.
The U.S. continues to spend the most on healthcare per person, even though outcomes and quality of care is not often ranked highest.
The price of medical care is the single biggest factor behind U.S. healthcare costs, accounting for 90% of spending. These expenditures reflect the cost of caring for those with chronic or long-term medical conditions, an aging population and the increased cost of new medicines, procedures and technologies.
Hospitals, doctors, and nurses all charge more in the U.S. than in other countries, with hospital costs increasing much faster than professional salaries. In other countries, prices for drugs and healthcare are at least partially controlled by the government. In the U.S. prices depend on market forces.
Among OECD member countries, the United States had the highest percentage of gross domestic product spent on health care in 2019. The U.S. spent nearly 17 percent of its GDP on health care services.
Those costs, plus much higher prices for medical services and pharmaceuticals and much higher pay for physicians and nurses, were the major reasons the U.S. spent a larger share of GDP on healthcare in 2016 than 10 other wealthy nations, according to a recent study in JAMA.
Government Now Pays For Nearly 50 Percent Of Health Care Spending, An Increase Driven By Baby Boomers Shifting Into Medicare. A new CMS report projects that U.S. health care spending will surpass $5.9 trillion in 2027, growing to represent more than 19 percent of the economy.
An estimated 23.6 million Americans with employer coverage spend a large share of their income on premiums or out-of-pocket costs, or both.
There are three main funding sources for health care in the United States: the government, private health insurers and individuals. Between Medicaid, Medicare and the other health care programs it runs, the federal government covers just about half of all medical spending.
According to a study in the January 2019 issue of Health Affairs, Americans pay the highest for healthcare on a per capita basis than any other developed nation. In 2016, the average American spent $9,892 which was 25% higher than second-place Switzerland.
Health spending per person in the U.S. was $11,945 in 2020, which was over $4,000 more expensive than any other high-income nation. The average amount spent on health per person in comparable countries ($5,736) is roughly half that of the U.S.
The U.S. continues to outspend other nations on health care, devoting nearly twice as much of its GDP as the average OECD country. U.S. health spending reached nearly 17 percent of GDP in 2019, far above the 10 other countries compared in this report.
How much does Canada spend on healthcare every year? According to the Canadian Institute for Health Information (CIHI), in 2019 Canada is expected to spend $264 billion on health care, which equates to $7,068 per Canadian citizen.
In 2020, 8.6 percent of people, or 28.0 million, did not have health insurance at any point during the year. The percentage of people with health insurance coverage for all or part of 2020 was 91.4.
High cost, not highest quality.
Despite spending far more on healthcare than other high-income nations, the US scores poorly on many key health measures, including life expectancy, preventable hospital admissions, suicide, and maternal mortality.
Both countries are ranked relatively high in international surveys of healthcare quality according to the World Health Organization (WHO). Both countries are relatively wealthy compared to much of the world, with long life expectancy. But Canadian life expectancy is slightly higher.
The United States spends the most on healthcare per person every year. With a per person cost of $10,586, the United States spends more than $3,000 more per person than the second-highest country Switzerland. U.S. households spent $980 billion on healthcare in 2017, which is about $3,200 per person.
Taxes are lower. Food costs less. And salaries are lower. Foreign doctors often make a sixth of the salary of their U.S. counterparts.
The analysis finds that households in the middle three income tiers pay between 19.8% and 23.2% of their income toward health care. The analysis considered all payments made by households to support health care, including taxes and employer contributions.
According to the STC report, all but 43 countries in the world offer free or universal healthcare. However, the standards among these countries can vary widely.
The U.S. government does not provide health benefits to citizens or visitors. Any time you get medical care, someone has to pay for it. Healthcare is very expensive. According to a U.S. government website, if you break your leg, you could end up with a bill for $7,500.