The cost of healthcare in the U.S. is extraordinarily high compared to other developed countries. In 2023, total U.S. healthcare spending reached about $4.9 trillion, averaging $14,570 per person. This amount is roughly double the healthcare spending per capita of other wealthy nations. Healthcare spending in the U.S. has risen over time to about 18% of the GDP as of 2023, up from just 5% in 1963.
Despite this very high spending, the value of the U.S. healthcare system is mixed. The quality of care is generally high, with advanced medical technology and skilled providers, but it is unevenly distributed and expensive. The U.S. lags behind other developed countries in several key health outcomes like life expectancy and infant mortality, meaning higher costs do not translate into better population health overall. Access issues, high prices, administrative costs, and inequalities weaken the comparative value of the U.S. system relative to its cost.
In summary:
- U.S. healthcare costs are the highest in the world at over $14,000 per person.
- Spending is about twice that of other developed countries.
- Quality can be high but unevenly accessed.
- Population health outcomes do not justify the higher spending, leading to relatively lower value.
- Many Americans face affordability challenges and inability to access quality care.
This illustrates a healthcare system with great technological and professional capability but burdened by inefficiencies, high prices, and inequities that reduce its overall value compared to international peers.
