Health Care Spending Statistics

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Health care is an essential element in our lives. Every single one of us has dealt with -- or will have to deal with -- a health condition at least once in our lives. That leads to health care spending. Health expenditures are increasing yearly, negatively impacting people, especially those without insurance. Further, with the COVID-19 pandemic, the United States and other countries worldwide have invested considerable amounts of money in their health care systems. But, what about low-income countries? What have they done in that direction?

Debthammer has compiled a list of the most relevant and interesting statistics for you, categorized into the chapters below.

Key highlights

  • The four countries with the lowest GDP are Burundi, South Sudan, Somalia, and Mozambique.
  • The global GDP is 9.83%.
  • In 2020, the U.S. gross domestic product accounted for 19.7%.
  • Health care spending in the U.S. increased from $3.8 trillion in 2019 to $4.1 trillion or $12,530 per person in 2020.
  • Medicare spending increased during 2019-2020 from $700 billion to $829.5 billion.
  • The U.S. spends more than 30.8% of $4.1 trillion on hospital care.
  • Health care spending is projected to increase from 2019 to 2028 at a rate of 5.4%.

Global health care spending statistics

Health care spending varies from state to state. The GDP, a measurement of the monetary value of finished goods and services, may indicate that one country invests more than the other in its health systems, among others.

A country's economy is in good shape if its GDP grows, and with a strong economy comes increased investment in healthcare systems. Lower GDP is terrible news for every industry, but it's especially disastrous for the health care sector.

1. The global GDP over the years has increased from 8.63 in 2000 to 9.83 in 2019. This figure indicates the countries' GDP growth, which results in a slower growth rate over the past 19 years, with only a 1.2% change.                                                                                                                                                                                                             (World Bank)

1. The Global GDP over the years has increased from 8.63 in 2000 to 9.83 in 2019. This figure indicates the countries' GDP growth, which results in a slower growth rate over the past 19 years, with only a 1.2% change.                                                                                                                                                                                                             (World Bank)

2. Burundi has the lowest GDP per capita in the world ($272.14).Besides Burundi, the other four countries with the lowest GDP are South Sudan ($364.39), Somalia ($486.53), and Mozambique ($500).                                                                                                                                                                                                       (Statista)

3. Before the pandemic, global health spending was increasing steadily, but more slowly. In 2018, global health spending amounted to $8.3 trillion, or 10% of global GDP, which resulted in the first time that health spending increased at a slower rate than GDP.

                                                                                                                  (WHO)

4.

Hospital receptionist [Recovered]

5. Countries' health spending remained unequal. The statement shows that 75% of the global health spending was in America and Europe. Another 19% of the health spending was used in the Western Pacific, which leaves Southeast Asian and Eastern Mediterranean regions each accounting for 2%. Finally, the remaining 1% of the total global health expenditures goes to African nations.

                                                                                                                (WHO)

U.S. health care spending statistics

A powerful country like the U.S., with a steady and growing economy, spends a considerable amount of money on the health care system, which is then divided into different sectors, including hospital care, physician services, clinical services, and many more. But how much does it actually spend, and what is its GDP, you might ask?

1. In 2020, the United States spent $4.1 trillion on its health care systems. When compared to global health care spending, the U.S. has spent more than half of the $8.3 trillion total spent globally on health care. In other words, the U.S. spends $12,530 per person and currently has a GDP of 19.7%.

                                                                                                           (CMS.gov)

2. The $4.1 trillion which was spent in health care was divided into various sectors within the industry.  Let’s see how much the United States spent on each sector in 2020:

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(AMA)

3. In 2020, private health insurance accounted for 27.9% of medical expenses.  Besides private health insurance, here's a look at how the spending breaks down:

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(AMA)

4. In 2020, federal government spending for health care systems grew by 36%. The United States government made significant investments in its health care systems due to the pandemic, which is evident in the increase in spending from 5.9% in 2019 to 36% in 2020.

                                                                                                               (AMA)

5. Medicare and Medicaid spending increased in 2020.  Medicare grew by 3.5%, which resulted in spending of $829.5 billion in 2020. Meanwhile, Medicaid saw a more significant growth rate of 9.2%, totaling $671.2 billion.                                                                                                                                                         (CMS.gov) 

6. When it comes to health care spending per person, the United States, Germany, Switzerland, Norway and Austria are the countries that  lead the pack. The U.S. spends the most on health care, at $12,530 per person. Germany follows with $7,383 spent per person. With $7,179, Norway is the third-highest spender, followed by Austria with $6,693.

                                                                                                    (OECD Data)

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Health care spending statistics in the future

Health care will be a key issue in the future. The United States and other nations need to invest in health care as soon as feasible if it wants a higher GDP. Below, we'll explore several predictions about the path that health care may take in the future.

1. Health spending is projected to increase between 2019 to 2028. Our current national health spending is $4.1 trillion, but by the end of 2028, that number will increase to

$ trillion
at a rate of
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It shows a bright future for the health care industry in which more investments will be made toward that path.

                                                                                                        (CMS.gov)

2. Prices for medical goods and services will increase. It is predicted that there will be a price hike for medical goods and services that reaches an average of 2.4% per year. This is expected to have a positive impact on the wages of the health care industry.

                                                                                                      (CMS.gov)

3. Medicare will see the fastest growth. Medicare is currently paying for 20.5% of medical expenses and is projected to increase by an average of 7.6% per year over the next few years as enrollment growth is projected to increase.

                                                                                                      (CMS.gov)

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