The United States spends significantly more on healthcare than comparable countries but has worse health outcomes. While prescription drug costs and administrative expenses are often blamed, the primary drivers of high U.S. health spending are payments to hospitals and physicians. The Inflation Reduction Act of 2022 aims to lower prescription drug costs, but broader issues persist. Click here for article.
Higher Spending on Healthcare: In 2021, the U.S. spent nearly twice as much on health per person ($12,197) compared to other wealthy countries ($6,514).
Primary Cost Drivers: Higher payments to hospitals and physicians account for almost 80% of the difference in health spending between the U.S. and comparable countries.
Administrative and Drug Costs: The U.S. spends significantly more on administrative costs ($925 vs. $245 per person) and prescription drugs ($1,635 vs. $944 per person) compared to peer nations.
Health Outcomes and Access: Despite higher spending, Americans have worse health outcomes, fewer physician visits, and shorter hospital stays than people in comparable countries. The U.S. also has fewer physicians per capita.
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