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Per capita, the US spends more than $10,000 each year on health care. That’s more than twice as much as advanced countries like the UK, Australia, France, Canada, and New Zealand.
US employers spend more per capita on health care premiums than similar countries. Private employers spend $4,092 per capita in the US, which is five times higher than runner up, Canada.
In 2019, healthcare spending per capita shot up by 290% from 1980. On average, US citizens spent $2,900 per person in 1980. Meanwhile, US adults today spend more than $11,000 per person per year.
The US ranked first for the highest percentage of GDP (16.9%) going to health care costs in 2020. Compared to similarly advanced countries, that’s almost twice the average. Switzerland, coming in second, spends 4.7% less as a percentage of GDP.
CMS estimates that total national health spending should hit $6.2 trillion by 2028. That amount is up from $3.6 trillion spent in 2018, growing at a rate of 5.4% between 2019 and 2028.
The growth rate of national spending on health care is 1.1% higher than the expected GDP growth rate (4.3%). At the same time, the share of the market spent on health care will increase from 2018’s 17.7% to a projected 19.7% in 2028.
40% of US adults forewent a necessary test or treatment in 2018 due to costs. Further, 30% of Americans say they would have to choose between necessities and paying a medical bill if a surprise bill arrived.
At the same time, the cost of health insurance premiums is rising. The national premium average rose to 30% in 2016, growing faster than individual average income during the same period.
The increasing burden of health costs could be due to the rising prevalence of the high-deductible health plan (HDHP). The average annual deductible was $3,069 in 2016. That’s compared to the national average of $1,975 only six years prior.
Meanwhile, over half of the country’s bankruptcies are due to medical expenses. 66.5% of bankruptcies in 2019 happened because of a surprise medical bill.
