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
1In 2021, average hospital costs per inpatient stay were $2,883 per day nationally
Verified2U.S. hospital spending totaled $1.39 trillion in 2022, growing 5.2 percent from 2021
Verified3Freestanding hospitals accounted for 92 percent of total hospital spending in 2022, or $1.28 trillion
Verified4Hospital spending per admission averaged $62,000 in 2022 for Medicare patients
Directional5Emergency department visit costs averaged $2,200 in 2021, up 176 percent since 2008
Single source6Inpatient hospital services cost $1.1 trillion in 2022, 79 percent of total hospital expenditures
Verified7Outpatient hospital spending was $289 billion in 2022, 21 percent of hospital total
Verified8Average cost of a hospital stay was $15,743 in 2022, varying by condition from $10,000 to $50,000+
Verified9Surgical care hospital costs averaged $38,728 per stay in 2021
Directional10Non-surgical stays cost $12,389 on average in 2021
Single source11Hospital profit margins averaged 7.8 percent in 2022 for community hospitals
Verified12Uncompensated hospital care costs reached $41.6 billion in 2022
Verified13COVID-19 related hospital spending was $184 billion in 2021
Verified14Average cost per hospital bed day was $3,025 in 2022
Directional15Neonatal intensive care unit (NICU) stays cost $5,000 per day on average in 2022
Single source16Heart bypass surgery averaged $123,000 per procedure in 2022
Verified17Hip replacement surgery cost $28,317 on average in 2022
Verified18Knee replacement averaged $34,256 per procedure in 2022
Verified19C-section delivery hospital cost averaged $14,768 in 2021
Directional20Vaginal delivery averaged $13,793 in hospital costs in 2021
Single source21Appendectomy surgery cost $33,000 on average in 2022
Verified22Gallbladder removal (cholecystectomy) averaged $17,800 in 2022
Verified23Hospital costs for stroke treatment averaged $58,000 per admission in 2022
Verified24Sepsis hospitalizations cost $27,201 per stay on average in 2022
DirectionalHospital 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
1Average employer-sponsored family health insurance premium was $23,968 in 2023, up 7 percent from 2022
Verified2Single coverage premiums averaged $8,435 annually in 2023 for employer plans
Verified3Workers' average contribution to family premiums was 29 percent, or $6,575 in 2023
Verified4Average deductible for single coverage reached $1,735 in 2023 employer plans
Directional5Family deductibles averaged $3,822 in 2023, with 19 percent of workers in $4,000+ plans
Single source6Out-of-pocket maximum for single coverage averaged $4,134 in 2023
Verified728 percent of adults skipped needed care due to costs in 2023
Verified8Average OOP spending was $1,514 per capita in 2022, 11 percent of NHE
Verified947 percent of adults with OOP costs over $500 struggled financially in 2023
Directional10Marketplace silver plan premiums averaged $456/month before subsidies in 2023
Single source11Medicare Part B premiums were $164.90/month in 2023, totaling $1,980/year
Verified12Part D average premium $55.50/month in 2023
Verified13Average OOP for hospital stays was $1,000 with insurance in 2022
Verified1426 percent of insured adults had problems paying medical bills in 2022
Directional15Dental OOP spending totaled $68 billion in 2022
Single source16Vision care OOP was $37 billion in 2022
Verified17Average copayment for physician visits was $25 in 2023 employer plans
Verified1814 percent of workers in consumer-driven health plans with $2,000+ deductibles in 2023
Verified19OOP for prescription drugs averaged $365/year per person with employer insurance in 2023
Directional20Uninsured adults faced average $1,200 OOP for emergency visits in 2022
Single source21Medical debt over $500 affected 41 percent of adults in 2022
Verified22Average family OOP maximum was $9,100 in 2023 plans
Verified23Silver plan OOP max averaged $9,200 for families in ACA marketplaces 2023
VerifiedInsurance 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
1In 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
Verified2U.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
Verified3From 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
Verified4In 2021, hospital care accounted for 30 percent of total national health expenditures, totaling $1.3 trillion
Directional5Physician and clinical services represented 20 percent of national health spending in 2022, amounting to $912.6 billion
Single source6Prescription drugs made up 9 percent of U.S. national health expenditures in 2022, equaling $405.5 billion
Verified7Medicare spending reached $944.2 billion in 2022, comprising 21 percent of total national health expenditures
Verified8Private health insurance expenditures totaled $1.3 trillion in 2022, representing 28 percent of national health spending
Verified9Between 2000 and 2022, national health expenditures grew at an average annual rate of 5.1 percent, far outpacing GDP growth of 3.8 percent
Directional10In 2019, national health spending per person was $11,582, contributing to total expenditures of $3.8 trillion
Single source11Federal government health spending accounted for 37 percent of total national health expenditures in 2022, totaling $1.7 trillion
Verified12State and local government health spending was $889 billion in 2022, or 20 percent of total national health expenditures
Verified13Out-of-pocket spending comprised 10 percent of national health expenditures in 2022, amounting to $452.8 billion
Verified14National health expenditures grew 7.4 percent in 2020 to $4.1 trillion amid the COVID-19 pandemic
Directional15From 1960 to 2022, the share of GDP devoted to health care rose from 5.2 percent to 17.3 percent
Single source16Retail prescription drug sales reached $577 billion in 2022, part of broader national health spending
Verified17Nursing care facilities and continuing care retirement communities spending was $204.4 billion in 2022, 5 percent of total NHE
Verified18Home health care expenditures totaled $133.5 billion in 2022, representing 3 percent of national health spending
Verified19Dental services accounted for 4.5 percent of national health expenditures in 2022, or $202.3 billion
Directional20Other professional services spending was $142.8 billion in 2022, 3 percent of total NHE
Single source21Durable medical equipment spending reached $65.5 billion in 2022, part of national health totals
Verified22National health spending on substance abuse treatment was $42 billion in 2022
Verified23Preventive and other personal health services cost $175.2 billion in 2022, 4 percent of NHE
Verified24Government administration and net cost of health insurance was $335 billion in 2022
Directional25Investment in structures and equipment for health care totaled $124 billion in 2022
Single source26Research and development health spending was $286 billion in 2022, 6 percent of NHE
Verified27Public health spending reached $152 billion in 2022, representing 3 percent of total national health expenditures
Verified28In 2022, Medicaid expenditures were $824.8 billion, 18 percent of national health spending
Verified29CHIP spending was $21.6 billion in 2022, part of broader government health expenditures
Directional30Workers' compensation health spending totaled $19.5 billion in 2022, less than 1 percent of NHE
Single sourceNational 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
1In 2022, U.S. per capita national health expenditure was $13,493, a 4.1 percent increase from $12,965 in 2021
Verified2Per capita health spending for Medicare enrollees averaged $14,718 in 2022, up 6.7 percent from prior year
Verified3Average per capita spending for private health insurance was $7,342 in 2022, representing a 4.0 percent rise
Verified4Medicaid per enrollee spending reached $8,623 in 2022, a 7.9 percent increase year-over-year
Directional5Out-of-pocket per capita health spending was $1,225 in 2022, down slightly from $1,237 in 2021
Single source6Per capita hospital spending averaged $4,076 in 2022, comprising 30 percent of total per capita NHE
Verified7Physician services per capita cost was $2,745 in 2022, up 4.8 percent from 2021
Verified8Prescription drug per capita spending hit $1,213 in 2022, a 6.0 percent increase
Verified9From 2000 to 2022, per capita health spending grew from $4,878 to $13,493, a cumulative increase of 177 percent
Directional10In 2020, per capita health spending surged 9.7 percent to $12,530 due to COVID-19
Single source11Average annual per capita growth in health spending was 4.8 percent from 2010-2022
Verified12Per capita spending for those under 19 was $3,959 in 2022, compared to $14,834 for ages 65+
Verified13Adults aged 45-64 had per capita health spending of $8,456 in 2022
Verified14Per capita spending for males was $12,114 in 2021, versus $13,789 for females
Directional15In California, per capita health spending was $9,588 in 2021, highest among states
Single source16Wyoming's per capita health expenditure was $12,407 in 2021, second highest nationally
Verified17Per capita NHE in Alaska reached $14,053 in 2021
Verified18Maryland's per capita health spending was $13,180 in 2021
Verified19Lowest per capita spending in Utah was $7,268 in 2021
Directional20Michigan per capita health expenditure was $8,927 in 2021
Single source21Per capita growth in health spending was highest in South Dakota at 8.2 percent in 2021
Verified22Medicare per capita spending growth was 8.5 percent in 2022, to $14,718
Verified23Private insurance per capita premiums averaged $8,435 for family coverage in 2023
Verified24Single coverage employer-sponsored insurance averaged $8,435 per year per enrollee in 2023
Directional25Per capita out-of-pocket spending for hospital care was $1,057 in 2022
Single source26In 2022, hospital care spending per capita increased 5.2 percent to $4,076 nationally
Verified27Physician per capita spending rose 3.3 percent to $2,745 in 2022
Verified28Prescription drugs per capita cost grew 8.4 percent to $1,213 in 2022
Verified29Nursing home per capita spending was $614 in 2022
Directional30Home health per capita expenditure averaged $401 in 2022
Single sourcePer 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
1U.S. retail prescription drug spending totaled $405.5 billion in 2022, 9 percent of NHE
Verified2Prescription drug prices rose 4.9 percent in 2022, outpacing general inflation
Verified3Medicare Part D spending on drugs was $145 billion in 2022
Verified4Specialty drugs accounted for 52 percent of total drug spending despite only 2 percent of prescriptions in 2022
Directional5Insulin costs averaged $982 per year per user in 2021, down from prior years due to caps
Single source6Humira, a top drug, generated $20.7 billion in U.S. sales in 2022
Verified7Ozempic sales reached $13 billion globally in 2023, with U.S. prices at $936/month
Verified8EpiPen costs $712 for a two-pack in 2023, up from $94 in 2007
Verified9Average generic drug price was $32 per prescription in 2022, versus $568 for brand-name
Directional10Brand-name drugs saw 31.6 percent price hikes at pharmacy launch in 2022
Single source11U.S. spends 241 percent more on drugs than OECD average per capita in 2022
Verified12Retail pharmacy drug sales were $577 billion in 2022
Verified13Medicare spending per enrollee on drugs was $3,148 in 2022
Verified14Employer plans paid $1,205 per member per year for pharmacy in 2023
Directional15PBM rebates totaled $68 billion in 2022 but net prices still high
Single source16Cancer drugs cost $10,000+ per month on average in U.S. in 2022
Verified17GLP-1 drugs like Wegovy cost $1,349/month before insurance in 2023
Verified18Antivirals for COVID-19 like Paxlovid cost $1,390 per course in 2022
Verified19ADHD drugs like Adderall cost $450/month without insurance in 2023
Directional20Average copay for Tier 3 drugs was $78 in employer plans 2023
Single source21Mail-order pharmacy drugs cost 28 percent less than retail in 2022
Verified22Biosimilars saved $7.2 billion in U.S. in 2022
Verified23Opioid prescriptions cost $12.5 billion in 2021
VerifiedPrescription 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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