U.S. Healthcare: On the Costly Edge

How does U.S. health spending compare to other major systems and major populations?

April 8, 2016

How does U.S. health spending compare to other major systems and major populations?

1. The United States spends 16.4% of its national GDP – or $2.75 trillion – each year on healthcare costs (as of 2013).

2. Healthcare consumes a far greater share of national GDP in the United States than in any other OECD country – at least 50% more than in other comparable countries.

3. In Germany, healthcare consumed 11% of GDP in 2013. France spent 10.9% of GDP on it.

Healthcare: A “Just The Facts” Series

U.S. Healthcare: On the Costly Edge

Where Are the Cost Controls?

Beyond “Obamacare”: The Uncovered Population

4. The two countries use a tightly regulated and largely non-profit system for health insurance to provide competitive coverage options.

5. The United Kingdom, with 64 million people under a unified and centralized single-payer payment and care system, spent 8.5% of GDP on healthcare.

6. Canada, with its single-payer national health insurance system and private care providers, spent 10.2%.

7. The second most populous developed nation, Japan, spent 10.2% of its GDP on healthcare, via non-profit insurance and private hospitals.

8. For all of this money, the United States does not have better health outcomes – except on cancer treatment.

9. Relative to peer nations, U.S. life expectancy is lower, chronic diseases are more widespread, infant mortality is higher.

Sources: The Globalist Research Center, OECD and The Commonwealth Fund

Takeaways

The US spends at least 50% more on healthcare than all other major economies with large populations.

The US devotes 16.4% of its economy to healthcare. Germany & France spend about 11%.

For its health spending, the US does not have better health outcomes – except on cancer treatment.