Key Takeaways
- In 2022, U.S. national health expenditures totaled $4.5 trillion, accounting for 17.3 percent of the nation's Gross Domestic Product.
- National health spending grew 4.1% to $4.5 trillion in 2022, or $13,493 per person.
- U.S. health spending per capita was $12,555 in 2021, more than twice the average of comparable OECD countries.
- In 2023, 91% of Americans had health insurance coverage.
- Employer-sponsored insurance covered 54.4% of population under age 65 in 2023.
- Medicaid/CHIP covered 19.1% of non-elderly population in 2023.
- There were 1.1 million active physicians in the U.S. in 2023.
- Registered nurses numbered 3.7 million in 2022, per BLS.
- U.S. has 2.6 hospital beds per 1,000 people, below OECD average.
- Average life expectancy at birth 77.5 years in 2023.
- Infant mortality rate 5.4 per 1,000 live births in 2022.
- Maternal mortality rate 32.9 deaths per 100,000 births in 2021.
- U.S. prescription drug market $576 billion in 2022.
- Medicare Part D spending $116 billion on drugs in 2022.
- Biologics/specialty drugs 50% of spending despite 2% volume.
The U.S. healthcare system is a massive $4.5 trillion industry with the highest costs globally.
Healthcare Spending
- In 2022, U.S. national health expenditures totaled $4.5 trillion, accounting for 17.3 percent of the nation's Gross Domestic Product.
- National health spending grew 4.1% to $4.5 trillion in 2022, or $13,493 per person.
- U.S. health spending per capita was $12,555 in 2021, more than twice the average of comparable OECD countries.
- Prescription drugs accounted for 9% of total national health expenditures in 2022, totaling $405.9 billion.
- Hospital care expenditures reached $1.3 trillion in 2022, representing 29% of total health spending.
- Medicare spending grew 8.1% to $944.3 billion in 2022, accounting for 21% of total NHE.
- Medicaid spending increased by 9.7% to $805.9 billion in 2022, or 18% of total national health spending.
- Private health insurance spending rose 6.2% to $1.3 trillion in 2022, covering 28% of NHE.
- Out-of-pocket spending on healthcare was $433.7 billion in 2022, 9.7% of total NHE.
- Administrative costs in the U.S. healthcare system were estimated at $496 billion in 2019, or 8% of total spending.
- U.S. health spending growth averaged 4.5% annually from 2019-2022, outpacing GDP growth.
- Physician and clinical services accounted for $807.7 billion in 2022, 18% of NHE.
- Nursing care facilities spending totaled $205.2 billion in 2022, up 5.4% from prior year.
- Home health care expenditures were $133.0 billion in 2022, growing 7.9%.
- Dental services spending reached $175.1 billion in 2022, 3.9% of NHE.
- Other professional services like ambulance and lab accounted for $161.5 billion in 2022.
- Government health spending was 37% of total NHE in 2022, totaling $1.7 trillion.
- Employer-sponsored insurance premiums averaged $23,968 for family coverage in 2023.
- Average annual premium for single coverage was $8,435 in 2023, up 7% from 2022.
- Workers contributed 29% of family premiums on average in 2023, about $6,575.
- U.S. spent 11.7% of NHE on retail prescription drugs in 2021.
- Freestanding mental health/substance abuse facilities spending was $58.5 billion in 2022.
- Total NHE projected to grow at 5.4% annually through 2031, reaching 19.7% of GDP.
- Hospital spending per inpatient day averaged $3,025 in 2021.
- Average cost of childbirth with insurance was $2,854 in 2022.
- Emergency room visit average cost was $2,715 in 2022 for insured patients.
- U.S. healthcare administrative spending per capita is $1,055, highest globally.
- High-cost claimants (top 5%) accounted for 49% of total health spending in 2018.
- Chronic conditions drive 90% of $4.1 trillion in annual healthcare costs.
- Obesity-related medical costs totaled $173 billion in 2019.
- Cancer care costs projected to reach $246 billion by 2030.
Healthcare Spending Interpretation
Insurance and Coverage
- In 2023, 91% of Americans had health insurance coverage.
- Employer-sponsored insurance covered 54.4% of population under age 65 in 2023.
- Medicaid/CHIP covered 19.1% of non-elderly population in 2023.
- Medicare covered 18.9% of total population in 2023.
- Direct purchase coverage (ACA Marketplace) enrolled 21.3 million in 2024.
- Uninsured rate dropped to 7.7% in 2023 from 9.2% in 2022.
- 26.4 million non-elderly Americans uninsured in 2023.
- TRICARE/VA/other federal coverage reached 7.5% of population in 2023.
- 80% of uninsured cite cost as main reason for no coverage.
- ACA reduced uninsured rate by 43% from 2010-2023.
- Medicaid expansion states have uninsured rates 4.2 points lower.
- Average Marketplace premium before subsidies $477/month in 2024.
- 88% of Marketplace enrollees receive premium tax credits.
- Silver plans average 70% actuarial value, most popular on exchanges.
- Employer plans cover 155 million workers and dependents in 2023.
- Medicare Advantage enrollment hit 32.8 million in 2024, 51% of beneficiaries.
- Medicaid covers 83 million low-income individuals as of 2023.
- CHIP enrollment stable at 9 million children in FY2023.
- Short-term limited duration plans grew post-ACA changes, covering ~3 million.
- Health sharing ministries enroll ~1 million, not insurance.
- 45 states expanded Medicaid under ACA by 2024.
- Uninsured children rate at 5.8% in 2023, down from 16.4% pre-ACA.
- Racial disparities: Black uninsured rate 10.7%, Hispanic 19.1% in 2023.
- Rural uninsured rate 12.4% vs 10.2% urban in 2022.
- Gig workers uninsured at 20% rate, higher than traditional employees.
Insurance and Coverage Interpretation
Patient Outcomes and Quality
- Average life expectancy at birth 77.5 years in 2023.
- Infant mortality rate 5.4 per 1,000 live births in 2022.
- Maternal mortality rate 32.9 deaths per 100,000 births in 2021.
- Cancer death rate declined 33% from 1991-2021.
- Heart disease death rate 161.5 per 100,000 in 2022.
- Diabetes prevalence 11.6% of adults in 2021.
- Obesity rate 42.4% among adults 20+ in 2017-2020.
- Hospital-acquired infections affect 1 in 31 patients.
- 30-day hospital readmission rate averages 15.3% for Medicare.
- Patient safety incidents: 251 million harm events yearly worldwide, U.S. share high.
- Preventive services use: 49% got mammogram in past 2 years.
- Opioid overdose deaths 81,806 in 2022.
- COVID-19 deaths totaled 1.2 million by 2024.
- Life expectancy gap: 20 years between top and bottom counties.
- Avoidable deaths under 75: 180 per 100,000 in U.S., higher than peers.
- 250,000 deaths yearly from medical errors, 3rd leading cause.
- HCAHPS scores: 73% rate hospital 9-10.
- Post-surgery complication rate 10-20% for major procedures.
- Chronic disease patients 60% of adults, 90% of $4.1T spend.
- Mental illness prevalence 22.8% adults yearly.
- Suicide rate 14.1 per 100,000 in 2022.
- Vaccination coverage: 92.7% MMR for kindergarteners 2022-23.
- A1c control in diabetics <7% in 55% patients.
- Colorectal cancer screening 72.5% ages 50-75.
Patient Outcomes and Quality Interpretation
Pharmaceuticals and Drugs
- U.S. prescription drug market $576 billion in 2022.
- Medicare Part D spending $116 billion on drugs in 2022.
- Biologics/specialty drugs 50% of spending despite 2% volume.
- Insulin average list price $300/vial, down from peaks.
- Generic drugs 90% of prescriptions, 21% spending.
- Biosimilars approved 40+, uptake low at 4%.
- Opioid prescriptions declined 44% 2011-2021.
- New molecular entities FDA approved 55 in 2023.
- Pharma R&D spend $83 billion private sector 2022.
- Drug price growth 4.9% in 2023.
- PBMs manage 95% of prescriptions.
- Medicare negotiating 10 drugs first year, savings $6B.
- Retail pharmacy scripts 4.3 billion in 2022.
- Mail-order pharmacy growth 20% yearly.
- Vaccine market $32 billion in 2023.
- GLP-1 drugs like Ozempic prescriptions up 300%.
- Orphan drugs 20% new approvals, high prices.
- Patent cliffs: $250B generics opportunity 2023-2028.
- Direct-to-consumer ads $6.5B in 2019.
- 340B program saved $46.5B in 2022.
- Drug shortages 323 active in 2024.
- Compounding pharmacies regulated post-2012 crisis.
- OTC market $48 billion sales 2022.
- mRNA vaccines revolutionized COVID response.
- Semaglutide sales $14B in 2023.
Pharmaceuticals and Drugs Interpretation
Providers and Workforce
- There were 1.1 million active physicians in the U.S. in 2023.
- Registered nurses numbered 3.7 million in 2022, per BLS.
- U.S. has 2.6 hospital beds per 1,000 people, below OECD average.
- 6,093 hospitals operated in U.S. in 2023.
- Nurse practitioners totaled 355,000 in 2022.
- Physician assistants reached 148,000 in 2022.
- Dentists numbered 202,000 in 2022.
- Pharmacists totaled 330,000 in 2022.
- Medical assistants grew to 764,000 in 2022.
- Home health aides: 4.1 million in 2022.
- Projected physician shortage: 37,800-124,000 by 2034.
- RN shortage projected at 193,100 by 2030.
- 37% of physicians burned out in 2022.
- Average physician salary $363,000 in 2023.
- Nurse salary average $89,010 annually in 2023.
- Rural areas have 39.8 physicians per 100,000 vs 53.3 urban.
- 92% of rural hospitals at risk of closure service issues.
- Telehealth visits surged 154% from 2019-2020.
- 78% of physicians use EHRs fully.
- Community health centers serve 30 million patients annually.
- Federally Qualified Health Centers number 1,400 with 15,000 sites.
- Average hospital staff size 4,200 FTEs in 2022.
- 48% of physicians employed by hospitals/health systems in 2023.
- International medical graduates 25% of U.S. physicians.
- Residency positions filled 92.4% by U.S. MD seniors in 2023.
Providers and Workforce Interpretation
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