The US spends significantly more on healthcare per person than other high-income nations, including Britain. While both countries face rising healthcare costs, the gap between US spending and that of its peers, including Britain, remains substantial. This article delves into the specifics of this disparity, using data from the OECD Health Statistics database.
US Healthcare Spending Dwarfs Other High-Income Nations
While wealthier nations generally allocate more resources to healthcare per capita, the US stands out with significantly higher expenditure. In 2022, the US spent $12,555 per person on healthcare, exceeding all other high-income countries by over $4,000.
This stark difference highlights a critical issue in the US healthcare system. The average spending in comparable large, wealthy nations was around $6,651 per person, roughly half of the US figure. This suggests that factors beyond national wealth contribute to the high US spending.
Recent Spending Trends: US vs. Comparable Countries
Although per capita health spending increased in most comparable nations between 2021 and 2022, the US experienced a smaller rise (2.9%) than most of its peers. Britain, along with Australia and Canada, saw even smaller increases. However, this 2.9% rise in the US slightly exceeds the previous year’s increase, though it remains considerably lower than the substantial jump observed from 2019 to 2020 (9.8%).
US Healthcare Expenditure as a Share of GDP
The difference in health spending as a proportion of GDP between the US and comparable OECD countries has grown over the past five decades. In 1970, both the US and comparable countries spent similar proportions of their GDP on health. However, since the 1980s, US health spending has grown at a much faster rate relative to its GDP.
Following a pandemic-induced surge, the US saw a decline in health spending as a share of GDP, reaching 16.6% in 2022. Despite this decrease, the US figure remains significantly higher than in peer nations, including Britain.
Pre-Pandemic Spending Growth Comparison
In the five years leading up to the COVID-19 pandemic (2015-2020), US per capita health spending growth (5.0%) outpaced the average for comparable countries (3.6%). However, the period between 2020 and 2022 saw a higher average annual growth rate in comparable countries (7.0%) compared to the US (2.7%). This shift suggests a potential change in global healthcare spending trends.
Conclusion
The US continues to spend substantially more on healthcare per person compared to Britain and other comparable high-income nations. This disparity underscores the need for a closer examination of the factors driving US healthcare costs. While recent trends hint at a potential slowdown in US spending growth, the gap remains significant, posing ongoing challenges for policymakers and the public alike.
