The US spends more on healthcare than any other country in the world. According to a recent study by Health Affairs, the US had the largest increase in healthcare expenditures of any country studied in 2017. This is despite the fact that the increase was 1.5 times faster than inflation from 2013-2017 and real prices for hospital expenditures increased by just 1%.
A recent study found that the US had the largest increase in healthcare expenditures of any country studied in the year 2017.
As you can see, the US is a leader in healthcare spending. In fact, according to this study, we were the nation with the largest increase in spending on healthcare of any country studied in 2017.
So how much time do you spend thinking about whether or not it’s worth paying for? Like many things that are related to money (like saving for retirement), it’s easy to put off thinking about costs until we’re faced with them directly—but once you’re there, it’s important to make sure you have enough coverage and plan ahead if your insurance changes.
The study looked at data from 2017 of the United States and 11 other countries, including Australia, Canada, France, Germany, Japan, Netherlands, New Zealand, Norway, Sweden, Switzerland, and the United Kingdom.
In a friendly tone:
The study, conducted by the International Federation of Health Plans (IFHP), looked at data from 2017 of the United States and 11 other countries, including Australia, Canada, France, Germany, Japan, Netherlands, New Zealand, Norway, Sweden and Switzerland. The researchers found that healthcare spending in America was higher than in any other country in every single measure they used — including per capita health care spending and as a percentage of gross domestic product (GDP). They also noted that this trend has been rising over time.
The results show that the USA has increased spending on healthcare by 27% from 1996 to 2017.
The results show that the USA has increased spending on healthcare by 27% from 1996 to 2017. This is a considerably higher increase than any other country studied, including France which increased its spending by 6%.
“The increase in overall health spending growth is primarily due to a rise in private funding for retail prescription drugs (4.6%), and an increase in real prices for hospital expenditures (1.2%),” said Amanda Frost with Health Affairs.
The US spends more than any other country on healthcare, but its outcomes are not better.
The US spends more than any other country on healthcare, but its outcomes are not better. In fact, the US has the highest mortality rate among high-income countries and poor life expectancy. The US also has one of the highest rates of preventable death in the world—with only Slovenia having a larger rate of avoidable death (deaths caused by lack of access to care), according to WHO data from 2013 (the most recent available).
Frost added that there was also a drop in public spending across all types of care except for outpatient care.
Public spending on healthcare has decreased overall. The decrease is due to a drop in hospital spending, which is in turn a result of lower outpatient care expenditures and lower prescription drug costs. In cash terms, total public spending fell by £4bn between 2015–16 and 2019–20 (from £131bn to £127bn).
As you might imagine, this trend has led many people to question whether the NHS is worth it anymore. “Is paying for healthcare worth it?” you ask yourself as you sit on the couch watching Netflix shows about doctors fixing people’s naughty bits all day long. “If I’m going to be honest with myself,” you think aloud while still staring at your phone screen, “I don’t think so.”
Healthcare costs rose 1.5 times faster than inflation from 2013-2017.
You may have heard that Americans spend more money on health care than any other country in the world. In fact, when you look at the numbers, it’s easy to see why: we’re consistently spending more than $10,000 per person annually.
But what does this really mean? Why do we pay so much for healthcare? And is paying for healthcare worth it?
“In contrast with all other examined countries, empirical evidence suggests that high prices, rather than higher utilization rates or intensity of goods or services used, are a primary driver of US healthcare costs,” Frost said.
In contrast with all other examined countries, empirical evidence suggests that high prices, rather than higher utilization rates or intensity of goods or services used, are a primary driver of US healthcare costs. This is because the US spends more than any other country on healthcare. The U.S. spent $3.5 trillion on health care in 2017 and accounted for nearly 18% of gross domestic product (GDP), according to World Bank data compiled by Statista. These numbers were significantly higher than those of other developed nations like Japan and Germany whose residents had better life expectancy at birth than Americans did (79 years vs 76 years).
The average cost per capita in the United States was $8,603 in 2018 compared to $4,908 across developed nations overall — which includes Canada ($5,493), Australia ($4,799) and Germany ($4,494). That difference translates into an additional $335 billion spent on health care annually when compared with those three countries alone; if all developed nations were included this figure would likely be much larger because they have lower costs per capita than the U.S., but still more expensive overall.”“
The US is spending more on healthcare than ever before.
According to the Organisation for Economic Co-operation and Development (OECD), the US spends more on healthcare than any other country in the world. Per capita, we spend over $10,000 per person annually—almost twice as much as Canada or Germany. As a percentage of GDP, we also spend more than any other country: 17% of our total economic output goes toward medical costs.
This is a problem that’s been growing over time: In 2000, our annual healthcare expenses were just under $7,000 per person; today they’re almost $2 trillion annually.
The point of all this is that the cost of healthcare in the US is increasing at an alarming rate. This means that we need to take a good hard look at what we’re spending on and how much it costs us, especially since medical bills are one of the most common causes of bankruptcy today. It’s also worth noting that this study only looked at 2017 data–we don’t know how much the costs will rise over time!