Wealthy nations often allocate significant portions of their economy to healthcare. This collection of charts examines how the United States’ healthcare expenditure compares to similarly large and affluent OECD (Organisation for Economic Co-operation and Development) countries, based on median GDP and median GDP per capita. This analysis is based on data from the OECD Health Statistics database.
U.S. Healthcare Spending Outpaces Other High-Income Countries Relative to Economy Size
Generally, wealthier nations, such as the U.S., tend to invest more per person in healthcare compared to lower-income countries. However, even when compared to other high-income nations, the U.S. stands out for its significantly higher health spending per person.
Comparing healthcare spending across countries is complex due to differing political, economic, and social factors influencing each nation’s expenditures. Given the strong correlation between a country’s wealth and its health spending, subsequent charts will benchmark the U.S. against comparable OECD countries—those with above-median national incomes and above-median income per person (measured by GDP and median GDP per capita) in at least one of the last ten years.
Large, Wealthy Countries Average Roughly Half the Per Person Health Spending of the U.S.
In 2022, health expenditures per person in the U.S. reached $12,555. This figure surpasses any other high-income nation by over $4,000. In contrast, the average health expenditure per person among comparable countries is approximately $6,651, roughly half of the U.S. expenditure per person.
Per Capita Health Spending Rose in Nearly All Peer Nations in 2022
Between 2021 and 2022, almost all peer nations saw an increase in per capita health spending. The Netherlands was a notable exception, experiencing a slight decrease of 0.1%. The U.S. witnessed a 2.9% increase in per capita health spending, which, while smaller than increases in many comparable nations, was still greater 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 for this period, at 9.6%.
The 2.9% increase in U.S. per capita health spending is slightly higher than the 2.4% increase observed between 2020 and 2021. However, it remains considerably lower than the 9.8% surge from 2019 to 2020.
Related Content:
Alt: Chart thumbnail linking to article comparing US life expectancy to other countries.
How does U.S. life expectancy compare to other countries?
Alt: Chart thumbnail linking to article on changes in US healthcare spending over time.
How has U.S. spending on healthcare changed over time?
U.S. Health Spending as GDP Share Decreased in 2022 Due to Economic Growth
Over the past half-century, the gap between U.S. health spending as a percentage of its economy and comparable OECD countries has expanded. In 1970, the U.S. allocated approximately 6.2% of its GDP to health, aligning with spending levels in several comparable nations (the average for comparably wealthy countries was around 4.9% of GDP in 1970). The U.S. maintained a similar pace with other countries until the 1980s, after which U.S. health spending grew significantly faster relative to its GDP. Since then, health spending as a proportion of the economy has increased more rapidly in the U.S. than in peer nations.
The COVID-19 pandemic caused both a surge in health spending and an economic downturn, leading to increased health spending as a share of GDP in the U.S. and all comparable countries between 2019 and 2020. As economies recovered, health spending as a share of GDP has declined in the U.S. and most peer nations. In 2020, the U.S. spent 18.8% of its GDP on health-related expenditures, up from 16.7% in 2019. U.S. health spending as a share of GDP decreased to 17.4% in 2021 and further to 16.6% in 2022—but remains considerably higher than in comparable countries.
U.S. Health Spending Growth Slightly Faster Than Peer Nations Pre-COVID-19
While the U.S. has consistently had higher 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 exceeded comparable countries’ average of 7.3% annual growth.
Examining 5-year growth rates reveals that from 2005-2010, 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 saw a slowdown in average health spending growth, from 5.3% during 2000-2005 to 4.5% during 2005-2010. In the five years leading up to the COVID-19 pandemic (2015-2020), the U.S.’s per capita health spending growth (5.0%) outpaced the average for comparable countries (3.6%). However, the annual growth rate for comparable countries increased to 7.0% between 2020 and 2022, while the U.S. saw a smaller increase of 2.7% during the same period.
About this site
The Peterson Center on Healthcare and KFF are partnering to monitor how well the U.S. healthcare system is performing in terms of quality and cost.
Alt: Logos of the Peterson Center on Healthcare and KFF, organizations partnering on the Health System Tracker.
