In this collection of charts, we delve into a comparison of health expenditures in the United States with those of other OECD countries of similar economic stature. Our analysis is grounded in the OECD Health Statistics database, focusing on nations with comparable wealth and economic indicators.
U.S. Health Spending Outpaces Other Wealthy Nations Relative to Economy Size
It’s well-established that wealthier nations, including the U.S., tend to allocate more resources to health care per person than countries with lower incomes. However, even when focusing solely on high-income countries, the U.S. stands out with significantly higher per capita health spending.
Comparing health spending across countries presents inherent complexities due to varying political, economic, and social landscapes. Given the strong correlation between health spending and national wealth, our comparative analysis centers on OECD countries that, like the U.S., have consistently demonstrated above-median national incomes and above-median income per person (measured by GDP and median GDP per capita) in at least one of the past ten years. This approach ensures a comparison among truly comparable economic entities.
Per Capita Health Spending in Peer Nations Averages About Half of the U.S. Level
In 2022, health expenditures per person in the U.S. reached $12,555, exceeding every other high-income nation by over $4,000. The average health spending per person in comparable countries stands at approximately $6,651, roughly half the U.S. figure. This stark contrast highlights the exceptional level of health expenditure in the United States compared to its economically similar counterparts.
Per Capita Health Spending Rose in Most Peer Nations in 2022
The year 2022 witnessed an increase in per capita health spending across almost all peer nations, with the notable exception of the Netherlands, which experienced a marginal decline of 0.1%. The U.S. saw a 2.9% increase in per capita health spending, a more moderate rise than many comparable nations, although higher than Australia (2.4%), Canada (0.7%), and the United Kingdom (0.5%). Belgium recorded the most substantial increase in per capita health spending among countries with available data between 2021 and 2022, at 9.6%.
This 2.9% growth rate in U.S. per capita health spending slightly surpasses the 2.4% increase observed between 2020 and 2021. However, it remains considerably lower than the significant 9.8% surge from 2019 to 2020, a period heavily influenced by the onset of the COVID-19 pandemic.
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U.S. Health Spending as GDP Share Decreased in 2022 Due to Economic Growth
Over the past half-century, the disparity in health spending as a proportion of GDP between the U.S. and comparable OECD countries has widened. In 1970, the U.S. allocated approximately 6.2% of its GDP to health, a figure comparable to several other wealthy nations (the average for comparably wealthy countries was around 4.9% of GDP in 1970). The U.S. maintained a relatively similar pace with other countries until the 1980s, after which health spending in the U.S. grew at a considerably faster rate relative to its GDP. Since then, health spending as a GDP share has increased more rapidly in the U.S. than in peer nations.
The COVID-19 pandemic triggered a surge in both health spending and an economic downturn, leading to elevated health spending as a percentage of GDP in the U.S. and all comparable countries between 2019 and 2020. As the economy has recovered, health spending as a share of GDP has declined in the U.S. and most peer nations. In 2020, the U.S. dedicated 18.8% of its GDP to health-related expenditures, up from 16.7% in 2019. This share decreased to 17.4% in 2021 and further to 16.6% in 2022, yet it remains significantly higher than in comparable countries, illustrating a continued divergence in economic priorities related to health.
U.S. Health Spending Growth Slightly Exceeded Peer Nations Pre-Pandemic
While the U.S. has consistently exhibited higher-than-average health spending, recent years have seen accelerated spending growth in other nations. Historically, the 1980s marked a period of rapid growth in U.S. per capita health expenditures. The 10.0% average annual growth rate in the U.S. during the 1980s significantly outpaced comparable countries, which averaged 7.3% annual growth during the same period.
Analyzing 5-year growth rates reveals that from 2005 to 2010, the U.S. experienced an average annual health spending growth rate of 4.1%, down from 7.2% in the preceding five-year period. Comparable countries also witnessed a slowdown in health spending growth, averaging 4.5% annual growth during 2005-2010, compared to 5.3% during 2000-2005. In the five years leading up to the COVID-19 pandemic (2015-2020), the U.S.’s growth in per capita health spending surpassed the average for comparable countries (5.0% versus 3.6%). However, the annual growth rate for comparable countries increased to 7.0% between 2020 and 2022, contrasting with a 2.7% increase for the U.S. during the same period, indicating a shifting landscape in health spending growth dynamics.
About this site
The Peterson Center on Healthcare and KFF collaborate to assess the performance of the U.S. healthcare system in terms of both quality and cost.
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