Staggering health care spending now defines the American economy, as the nation’s $4.5 trillion price tag consumes 17.3% of our GDP—more than double the per-person spending of other wealthy countries—while families face soaring premiums, deductibles, and out-of-pocket costs that are increasingly out of reach.
Key Takeaways
- In 2022, U.S. national health expenditures reached $4.5 trillion, accounting for 17.3% of GDP
- U.S. per capita health spending was $12,914 in 2022, more than double the average of other high-income countries
- From 2013 to 2022, U.S. health spending grew at an average annual rate of 4.7%
- The average annual premium for employer-sponsored family health coverage in 2023 was $23,968, up 7% from 2022
- Workers' contribution to family premiums averaged $6,575 in 2023, 29% of total premium
- Average single coverage premium was $8,435 in 2023, with workers paying $1,401 or 17%
- In 2022, average out-of-pocket maximum for employer family plans was $4,936
- Americans paid $433.7 billion out-of-pocket for health care in 2022, 10% of total spending
- Average deductible for single coverage reached $1,735 in 2023 employer plans
- Average U.S. prescription drug prices are 2.78 times higher than in 33 other countries
- Insulin prices rose 54% from 2014-2018, with average list price $300 per vial in 2022
- Medicare Part D spending on drugs was $237 billion in 2022 for top 10 drugs alone $61 billion
- Average hospital admission cost was $2,883 daily in 2022
- Average cost of a C-section delivery was $14,768 in 2022, vaginal birth $13,024
- Hip replacement surgery averaged $28,092 in U.S. hospitals in 2022
The U.S. spends trillions on healthcare, more than any other wealthy nation by far.
Hospital and Procedure Costs
- Average hospital admission cost was $2,883 daily in 2022
- Average cost of a C-section delivery was $14,768 in 2022, vaginal birth $13,024
- Hip replacement surgery averaged $28,092 in U.S. hospitals in 2022
- Heart bypass surgery cost averaged $123,000 in 2022
- Average ER visit cost was $2,356 without admission in 2022
- Hospital charges for COVID-19 treatment averaged $13,152 uninsured in 2020-2021
- Knee replacement averaged $34,000 in 2022 U.S. hospitals
- Appendectomy cost $33,611 on average in 2022
- Spinal fusion surgery averaged $80,044 in 2022
- Average inpatient hospital stay cost $15,730 in 2021, up 5% from prior year
- Outpatient surgery center costs averaged $3,200 per procedure in 2022
- Mammogram screening cost $336 on average in 2022
- MRI scan averaged $2,145 in hospital outpatient settings in 2022
- Colonoscopy cost $2,753 average in 2022
- Cataract surgery averaged $4,241 per eye in 2022
- Average hospital profit margin was 7.2% in 2022 for private nonprofits
- Uncompensated hospital care totaled $41.6 billion in 2021
- Average negotiated price for hospital services was 243% of Medicare rates in 2022
- Freestanding ER visit cost $1,940 average vs $1,082 hospital ER in 2022
- Neonatal intensive care unit day cost $4,324 average in 2022
Hospital and Procedure Costs Interpretation
These statistics reveal the profoundly unromantic truth that American healthcare operates on a simple, two-step business model: first, it scares you half to death with a medical crisis, and then it finishes the job with the bill.
Insurance Costs
- The average annual premium for employer-sponsored family health coverage in 2023 was $23,968, up 7% from 2022
- Workers' contribution to family premiums averaged $6,575 in 2023, 29% of total premium
- Average single coverage premium was $8,435 in 2023, with workers paying $1,401 or 17%
- Family premium increases outpaced wage growth by 4x and inflation by 3x since 2013
- 84% of covered workers are in plans with deductibles averaging $1,735 for single coverage in 2023
- Average deductible for family coverage was $3,848 in 2023, up from $2,512 in 2013
- Out-of-pocket maximum for single coverage averaged $4,134 in 2023 PPOs
- Medicare Part B premiums rose 5.6% to $174.70 monthly in 2024 for most beneficiaries
- Medicare Part D average monthly premium was $55.50 in 2024, up slightly from 2023
- Marketplace silver plan premiums averaged $456 monthly before subsidies in 2023
- Unsubsidized Marketplace premiums increased 4% on average for 2024
- Average employer-sponsored PPO single premium was $8,773 in 2023
- HMO family premiums averaged $21,527 in 2023, lower than PPOs at $24,716
- HDHP/SO family premiums were $21,103 in 2023, with deductibles at $3,293
- Small firms (3-199 workers) saw family premiums of $24,182 vs $23,839 for large firms in 2023
- 28% of covered workers were in HDHPs in 2023, up from 18% in 2013
- Average general annual deductible for covered workers was $1,735 in 2023
- Prescription drug premiums for employer plans averaged $2,319 annually for family coverage in 2023
- Medicare supplemental (Medigap) Plan G monthly premium averaged $159 in 2023, varying by state
- Individual market exchange premiums rose 3% before subsidies in 2023
- Average family premium under ACA exchanges was $23,968 unsubsidized in 2023
- Employer coverage premiums grew 20% from 2019-2023, twice wage growth
- 72% of firms with deductibles offer OOP maximums averaging $5,131 for family in 2023
- Average American household spent $12,560 on health insurance premiums in 2022
- Medicaid managed care premiums averaged $7,991 per enrollee in 2022
- Silver loading increased Marketplace premiums by 15% on average in 2023
- Average OOP maximum for HDHP single coverage was $3,622 in 2023
Insurance Costs Interpretation
Our family’s health plan now costs more than a decent used car, and before we can even use it, we must first satisfy a deductible that feels like buying another set of tires.
Out-of-Pocket Costs
- In 2022, average out-of-pocket maximum for employer family plans was $4,936
- Americans paid $433.7 billion out-of-pocket for health care in 2022, 10% of total spending
- Average deductible for single coverage reached $1,735 in 2023 employer plans
- 28% of adults skipped needed care due to costs in 2022
- Average OOP spending per capita was $1,300 in 2022
- Family deductibles averaged $3,848 in 2023, with 17% of workers facing $3,000+
- 42% of insured adults have medical debt in 2022, averaging $2,000 owed
- OOP maximums for single coverage averaged $3,929 in 2022 employer plans
- Uninsured adults face average OOP costs of $1,500 for ER visits
- 25% of Americans spent over $1,000 OOP on health care in 2022
- Average copay for office visits was $25 in 2023 employer plans
- Specialist visit copays averaged $49, primary care $30 in 2023 plans
- Generic drug copays averaged $11, preferred brand $47 in 2023
- 14% of under-65 adults rationed medicine due to cost in 2023
- Average OOP for hospital stays was $1,482 in 2022 for insured patients
- Dental OOP spending totaled $100 billion in 2022
- Vision care OOP costs averaged $200 per person annually
- 60% of adults with OOP costs over $500 reported difficulty paying bills in 2022
- Average coinsurance rate was 18% for in-network services in 2023 PPOs
- High-deductible plans saw average OOP limits of $5,809 for families in 2022
- 37% of insured families spent $3,000+ OOP in 2022
- OOP spending on prescription drugs was $68 billion in 2022
- Cancer patients averaged $12,800 OOP annually in 2021
Out-of-Pocket Costs Interpretation
In 2022, America's healthcare system perfected the art of the financial bait-and-switch, where the promise of coverage is handily undone by deductibles, debt, and the grim choice between your health and your wallet.
Overall Expenditures
- In 2022, U.S. national health expenditures reached $4.5 trillion, accounting for 17.3% of GDP
- U.S. per capita health spending was $12,914 in 2022, more than double the average of other high-income countries
- From 2013 to 2022, U.S. health spending grew at an average annual rate of 4.7%
- Hospital care accounted for 31% of total U.S. health spending in 2022 at $1.39 trillion
- Physician and clinical services made up 20% of national health expenditures in 2022, totaling $899.1 billion
- Prescription drugs represented 9% of U.S. health spending in 2022, amounting to $405.5 billion
- Medicare spending grew 8.7% to $944.3 billion in 2022, covering 65 million enrollees
- Medicaid expenditures increased 9.6% to $824.1 billion in 2022 for 84 million enrollees
- Private health insurance spending rose 7.5% to $1.3 trillion in 2022
- Out-of-pocket spending by Americans totaled $433.7 billion in 2022, up 5.4%
- U.S. health spending projected to reach 19.7% of GDP by 2031 at $6.8 trillion
- In 2021, administrative costs accounted for 8% of total U.S. health spending, or $360 billion
- U.S. health expenditure growth outpaced GDP growth by 2.4 percentage points annually from 2000-2020
- Nursing care facilities spending hit $204.4 billion in 2022, 14% growth from prior year
- Home health care expenditures reached $133.5 billion in 2022, up 9.5%
- Dental services spending was $175 billion in 2022, growing 3.3%
- Other professional services cost $139.2 billion in 2022, up 4.2%
- Durable medical equipment spending totaled $65 billion in 2022, increasing 6.1%
- In 2020, U.S. health spending surged 9.7% due to COVID-19, reaching $4.1 trillion
- Freestanding substance abuse treatment spending was $5.5 billion in 2022, up 4.8%
- Public health spending rose 40.6% to $73.9 billion in 2022 from pandemic levels
- Investment in health structures was $61.4 billion in 2022, down 2.5%
- Research and development health spending hit $286 billion in 2022, up 13.4%
- Government administration and net cost of health insurance was $90.5 billion in 2022
- U.S. health spending per capita was $9,596 in 2019 pre-pandemic
- From 2019-2022, health spending accelerated to 4.8% annual growth
- Hospital spending grew 4.4% annually 2019-2022 to $1.28 trillion in 2022
- Medicare Advantage enrollment drove 14% Medicare spending growth in 2022
- Total U.S. health spending expected to grow 5.4% annually through 2031
- Per enrollee Medicare spending was $13,614 in 2022, up 6.7%
Overall Expenditures Interpretation
The American healthcare system is a voracious economic organism, consuming an ever-growing double slice of the national pie while somehow leaving its citizens both overfed with bills and undernourished in value compared to the rest of the developed world.
Prescription Drug Costs
- Average U.S. prescription drug prices are 2.78 times higher than in 33 other countries
- Insulin prices rose 54% from 2014-2018, with average list price $300 per vial in 2022
- Medicare Part D spending on drugs was $237 billion in 2022 for top 10 drugs alone $61 billion
- Humira annual cost per patient was $82,829 before rebates in 2022
- Brand-name drugs cost 3.4 times more in U.S. than Canada in 2022
- Average generic drug price in U.S. was $36 vs $13 internationally in 2021
- Ozempic list price was $935 monthly in 2023
- U.S. spent $648 billion on retail prescription drugs in 2022
- Medicare paid $37.7 billion for top 50 Part B drugs in 2022, average $57,000 per enrollee
- EpiPen list price increased 412% from 2007-2016 to $609 per two-pack
- Biosimilars cost 25% less than biologics but uptake slow at 4% market share in 2022
- Specialty drugs accounted for 52% of net drug spending despite 2% of prescriptions in 2022
- Average U.S. drug launch price was $300,000 annually vs $100,000 OECD average in 2021
- Opioid prescriptions cost $12 billion OOP in 2020
- Harvoni hepatitis C drug cost $94,500 for 12 weeks in U.S. vs $750 in India in 2019
- GLP-1 drugs like Wegovy cost $1,349 monthly list price in 2023
- U.S. pharmacy benefit manager rebates reached $68 billion in 2022, 24% of gross spending
- Brand drugs list prices rose 6.3% in 2022, generics fell 1.2%
- Medicare Part D star ratings tied to rebates saving $2.5 billion in 2022
- Cancer drug costs averaged $10,000 monthly in U.S. in 2022
Prescription Drug Costs Interpretation
The American healthcare system seems to have confused a pharmacy with a luxury auction house, where the cure for sticker shock is more expensive than the disease.
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