As the numbers tell a stark story—where U.S. health spending hit $4.8 trillion last year, devouring an ever-larger slice of our national economy while the average family's insurance premium climbed to nearly $24,000—understanding the forces driving these costs is no longer just an economic exercise, but a necessity for financial and physical well-being.
Key Takeaways
- In 2022, U.S. national health expenditures totaled $4.5 trillion, accounting for 17.3 percent of Gross Domestic Product (GDP), an increase of 4.1 percent from 2021
- U.S. national health spending grew 2.7 percent in 2023 to approximately $4.8 trillion, driven primarily by faster growth in Medicare and private health insurance spending
- From 2019 to 2022, cumulative growth in national health expenditures outpaced GDP growth by 12.4 percentage points, reaching a total of $13.9 trillion over the period
- In 2022, U.S. per capita national health expenditure was $13,493, a 4.1 percent increase from $12,965 in 2021
- Per capita health spending for Medicare enrollees averaged $14,718 in 2022, up 6.7 percent from prior year
- Average per capita spending for private health insurance was $7,342 in 2022, representing a 4.0 percent rise
- In 2021, average hospital costs per inpatient stay were $2,883 per day nationally
- U.S. hospital spending totaled $1.39 trillion in 2022, growing 5.2 percent from 2021
- Freestanding hospitals accounted for 92 percent of total hospital spending in 2022, or $1.28 trillion
- U.S. retail prescription drug spending totaled $405.5 billion in 2022, 9 percent of NHE
- Prescription drug prices rose 4.9 percent in 2022, outpacing general inflation
- Medicare Part D spending on drugs was $145 billion in 2022
- Average employer-sponsored family health insurance premium was $23,968 in 2023, up 7 percent from 2022
- Single coverage premiums averaged $8,435 annually in 2023 for employer plans
- Workers' average contribution to family premiums was 29 percent, or $6,575 in 2023
U.S. health spending is immense, persistently growing faster than the overall economy.
Hospital Costs
- In 2021, average hospital costs per inpatient stay were $2,883 per day nationally
- U.S. hospital spending totaled $1.39 trillion in 2022, growing 5.2 percent from 2021
- Freestanding hospitals accounted for 92 percent of total hospital spending in 2022, or $1.28 trillion
- Hospital spending per admission averaged $62,000 in 2022 for Medicare patients
- Emergency department visit costs averaged $2,200 in 2021, up 176 percent since 2008
- Inpatient hospital services cost $1.1 trillion in 2022, 79 percent of total hospital expenditures
- Outpatient hospital spending was $289 billion in 2022, 21 percent of hospital total
- Average cost of a hospital stay was $15,743 in 2022, varying by condition from $10,000 to $50,000+
- Surgical care hospital costs averaged $38,728 per stay in 2021
- Non-surgical stays cost $12,389 on average in 2021
- Hospital profit margins averaged 7.8 percent in 2022 for community hospitals
- Uncompensated hospital care costs reached $41.6 billion in 2022
- COVID-19 related hospital spending was $184 billion in 2021
- Average cost per hospital bed day was $3,025 in 2022
- Neonatal intensive care unit (NICU) stays cost $5,000 per day on average in 2022
- Heart bypass surgery averaged $123,000 per procedure in 2022
- Hip replacement surgery cost $28,317 on average in 2022
- Knee replacement averaged $34,256 per procedure in 2022
- C-section delivery hospital cost averaged $14,768 in 2021
- Vaginal delivery averaged $13,793 in hospital costs in 2021
- Appendectomy surgery cost $33,000 on average in 2022
- Gallbladder removal (cholecystectomy) averaged $17,800 in 2022
- Hospital costs for stroke treatment averaged $58,000 per admission in 2022
- Sepsis hospitalizations cost $27,201 per stay on average in 2022
Hospital Costs Interpretation
Despite achieving an impressive 7.8% profit margin, America's hospital system is a trillion-dollar industry where the simple act of being born can cost a family's entire savings and a single day in the NICU rivals a luxury car payment.
Insurance and OOP Costs
- Average employer-sponsored family health insurance premium was $23,968 in 2023, up 7 percent from 2022
- Single coverage premiums averaged $8,435 annually in 2023 for employer plans
- Workers' average contribution to family premiums was 29 percent, or $6,575 in 2023
- Average deductible for single coverage reached $1,735 in 2023 employer plans
- Family deductibles averaged $3,822 in 2023, with 19 percent of workers in $4,000+ plans
- Out-of-pocket maximum for single coverage averaged $4,134 in 2023
- 28 percent of adults skipped needed care due to costs in 2023
- Average OOP spending was $1,514 per capita in 2022, 11 percent of NHE
- 47 percent of adults with OOP costs over $500 struggled financially in 2023
- Marketplace silver plan premiums averaged $456/month before subsidies in 2023
- Medicare Part B premiums were $164.90/month in 2023, totaling $1,980/year
- Part D average premium $55.50/month in 2023
- Average OOP for hospital stays was $1,000 with insurance in 2022
- 26 percent of insured adults had problems paying medical bills in 2022
- Dental OOP spending totaled $68 billion in 2022
- Vision care OOP was $37 billion in 2022
- Average copayment for physician visits was $25 in 2023 employer plans
- 14 percent of workers in consumer-driven health plans with $2,000+ deductibles in 2023
- OOP for prescription drugs averaged $365/year per person with employer insurance in 2023
- Uninsured adults faced average $1,200 OOP for emergency visits in 2022
- Medical debt over $500 affected 41 percent of adults in 2022
- Average family OOP maximum was $9,100 in 2023 plans
- Silver plan OOP max averaged $9,200 for families in ACA marketplaces 2023
Insurance and OOP Costs Interpretation
While the premiums whisper "you're covered," the deductibles, copays, and out-of-pocket maximums scream "gotcha!" in a financially ruinous chorus that leaves nearly a third of adults skipping care and half struggling with bills over a mere five hundred dollars.
National Expenditures
- In 2022, U.S. national health expenditures totaled $4.5 trillion, accounting for 17.3 percent of Gross Domestic Product (GDP), an increase of 4.1 percent from 2021
- U.S. national health spending grew 2.7 percent in 2023 to approximately $4.8 trillion, driven primarily by faster growth in Medicare and private health insurance spending
- From 2019 to 2022, cumulative growth in national health expenditures outpaced GDP growth by 12.4 percentage points, reaching a total of $13.9 trillion over the period
- In 2021, hospital care accounted for 30 percent of total national health expenditures, totaling $1.3 trillion
- Physician and clinical services represented 20 percent of national health spending in 2022, amounting to $912.6 billion
- Prescription drugs made up 9 percent of U.S. national health expenditures in 2022, equaling $405.5 billion
- Medicare spending reached $944.2 billion in 2022, comprising 21 percent of total national health expenditures
- Private health insurance expenditures totaled $1.3 trillion in 2022, representing 28 percent of national health spending
- Between 2000 and 2022, national health expenditures grew at an average annual rate of 5.1 percent, far outpacing GDP growth of 3.8 percent
- In 2019, national health spending per person was $11,582, contributing to total expenditures of $3.8 trillion
- Federal government health spending accounted for 37 percent of total national health expenditures in 2022, totaling $1.7 trillion
- State and local government health spending was $889 billion in 2022, or 20 percent of total national health expenditures
- Out-of-pocket spending comprised 10 percent of national health expenditures in 2022, amounting to $452.8 billion
- National health expenditures grew 7.4 percent in 2020 to $4.1 trillion amid the COVID-19 pandemic
- From 1960 to 2022, the share of GDP devoted to health care rose from 5.2 percent to 17.3 percent
- Retail prescription drug sales reached $577 billion in 2022, part of broader national health spending
- Nursing care facilities and continuing care retirement communities spending was $204.4 billion in 2022, 5 percent of total NHE
- Home health care expenditures totaled $133.5 billion in 2022, representing 3 percent of national health spending
- Dental services accounted for 4.5 percent of national health expenditures in 2022, or $202.3 billion
- Other professional services spending was $142.8 billion in 2022, 3 percent of total NHE
- Durable medical equipment spending reached $65.5 billion in 2022, part of national health totals
- National health spending on substance abuse treatment was $42 billion in 2022
- Preventive and other personal health services cost $175.2 billion in 2022, 4 percent of NHE
- Government administration and net cost of health insurance was $335 billion in 2022
- Investment in structures and equipment for health care totaled $124 billion in 2022
- Research and development health spending was $286 billion in 2022, 6 percent of NHE
- Public health spending reached $152 billion in 2022, representing 3 percent of total national health expenditures
- In 2022, Medicaid expenditures were $824.8 billion, 18 percent of national health spending
- CHIP spending was $21.6 billion in 2022, part of broader government health expenditures
- Workers' compensation health spending totaled $19.5 billion in 2022, less than 1 percent of NHE
National Expenditures Interpretation
America's health care bill is like a premium cable package we all have to buy but can never seem to watch anything on, as it now consumes a staggering 17.3% of our entire economy and grows faster than our ability to pay for it.
Per Capita Costs
- In 2022, U.S. per capita national health expenditure was $13,493, a 4.1 percent increase from $12,965 in 2021
- Per capita health spending for Medicare enrollees averaged $14,718 in 2022, up 6.7 percent from prior year
- Average per capita spending for private health insurance was $7,342 in 2022, representing a 4.0 percent rise
- Medicaid per enrollee spending reached $8,623 in 2022, a 7.9 percent increase year-over-year
- Out-of-pocket per capita health spending was $1,225 in 2022, down slightly from $1,237 in 2021
- Per capita hospital spending averaged $4,076 in 2022, comprising 30 percent of total per capita NHE
- Physician services per capita cost was $2,745 in 2022, up 4.8 percent from 2021
- Prescription drug per capita spending hit $1,213 in 2022, a 6.0 percent increase
- From 2000 to 2022, per capita health spending grew from $4,878 to $13,493, a cumulative increase of 177 percent
- In 2020, per capita health spending surged 9.7 percent to $12,530 due to COVID-19
- Average annual per capita growth in health spending was 4.8 percent from 2010-2022
- Per capita spending for those under 19 was $3,959 in 2022, compared to $14,834 for ages 65+
- Adults aged 45-64 had per capita health spending of $8,456 in 2022
- Per capita spending for males was $12,114 in 2021, versus $13,789 for females
- In California, per capita health spending was $9,588 in 2021, highest among states
- Wyoming's per capita health expenditure was $12,407 in 2021, second highest nationally
- Per capita NHE in Alaska reached $14,053 in 2021
- Maryland's per capita health spending was $13,180 in 2021
- Lowest per capita spending in Utah was $7,268 in 2021
- Michigan per capita health expenditure was $8,927 in 2021
- Per capita growth in health spending was highest in South Dakota at 8.2 percent in 2021
- Medicare per capita spending growth was 8.5 percent in 2022, to $14,718
- Private insurance per capita premiums averaged $8,435 for family coverage in 2023
- Single coverage employer-sponsored insurance averaged $8,435 per year per enrollee in 2023
- Per capita out-of-pocket spending for hospital care was $1,057 in 2022
- In 2022, hospital care spending per capita increased 5.2 percent to $4,076 nationally
- Physician per capita spending rose 3.3 percent to $2,745 in 2022
- Prescription drugs per capita cost grew 8.4 percent to $1,213 in 2022
- Nursing home per capita spending was $614 in 2022
- Home health per capita expenditure averaged $401 in 2022
Per Capita Costs Interpretation
We're all paying a king's ransom to be slightly less mortal, with costs rising so reliably you could set your watch by them, if you could only afford a watch after paying your health insurance premiums.
Prescription Drug Costs
- U.S. retail prescription drug spending totaled $405.5 billion in 2022, 9 percent of NHE
- Prescription drug prices rose 4.9 percent in 2022, outpacing general inflation
- Medicare Part D spending on drugs was $145 billion in 2022
- Specialty drugs accounted for 52 percent of total drug spending despite only 2 percent of prescriptions in 2022
- Insulin costs averaged $982 per year per user in 2021, down from prior years due to caps
- Humira, a top drug, generated $20.7 billion in U.S. sales in 2022
- Ozempic sales reached $13 billion globally in 2023, with U.S. prices at $936/month
- EpiPen costs $712 for a two-pack in 2023, up from $94 in 2007
- Average generic drug price was $32 per prescription in 2022, versus $568 for brand-name
- Brand-name drugs saw 31.6 percent price hikes at pharmacy launch in 2022
- U.S. spends 241 percent more on drugs than OECD average per capita in 2022
- Retail pharmacy drug sales were $577 billion in 2022
- Medicare spending per enrollee on drugs was $3,148 in 2022
- Employer plans paid $1,205 per member per year for pharmacy in 2023
- PBM rebates totaled $68 billion in 2022 but net prices still high
- Cancer drugs cost $10,000+ per month on average in U.S. in 2022
- GLP-1 drugs like Wegovy cost $1,349/month before insurance in 2023
- Antivirals for COVID-19 like Paxlovid cost $1,390 per course in 2022
- ADHD drugs like Adderall cost $450/month without insurance in 2023
- Average copay for Tier 3 drugs was $78 in employer plans 2023
- Mail-order pharmacy drugs cost 28 percent less than retail in 2022
- Biosimilars saved $7.2 billion in U.S. in 2022
- Opioid prescriptions cost $12.5 billion in 2021
Prescription Drug Costs Interpretation
The American healthcare system has perfected a bizarre alchemy where a mere 2% of prescriptions magically consume over half of all drug spending, proving that when it comes to medication, we're paying a premium not just for the chemistry, but for the sheer audacity of the pricing.
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