2018 | Irene Papanicolas, PhD; Liana R. Woskie, MSc; Ashish K. Jha, MD, MPH
The United States spends significantly more on health care than other high-income countries, with 17.8% of its GDP allocated to health care in 2016, compared to 9.6% in Australia and 12.4% in Switzerland. Despite this, the U.S. has lower life expectancy (78.8 years) and higher infant mortality (5.8 per 1000 live births) than other countries. The U.S. also has a higher proportion of private health insurance (55.3%) and higher administrative costs (8% of GDP) compared to other countries, which range from 1% to 3%. The U.S. spends more on pharmaceuticals per capita ($1443) than other countries, with a higher proportion of generic drugs (84%) in the U.S. compared to other countries. The U.S. also has higher salaries for physicians and nurses, with generalist physicians earning $218,173 compared to $86,607 to $154,126 in other countries. Despite similar utilization rates of health care services, the U.S. spends more due to higher prices for labor, goods, and administrative costs. The study suggests that efforts to reduce health care spending should focus on lowering prices and administrative costs rather than just reducing utilization. The U.S. has lower rates of social spending compared to other countries, but this does not appear to be the main driver of higher health care spending. The U.S. also has higher rates of poverty and lower life expectancy for non-white populations. The study highlights the need for policy reforms to address the high costs of health care in the U.S. while improving health outcomes.The United States spends significantly more on health care than other high-income countries, with 17.8% of its GDP allocated to health care in 2016, compared to 9.6% in Australia and 12.4% in Switzerland. Despite this, the U.S. has lower life expectancy (78.8 years) and higher infant mortality (5.8 per 1000 live births) than other countries. The U.S. also has a higher proportion of private health insurance (55.3%) and higher administrative costs (8% of GDP) compared to other countries, which range from 1% to 3%. The U.S. spends more on pharmaceuticals per capita ($1443) than other countries, with a higher proportion of generic drugs (84%) in the U.S. compared to other countries. The U.S. also has higher salaries for physicians and nurses, with generalist physicians earning $218,173 compared to $86,607 to $154,126 in other countries. Despite similar utilization rates of health care services, the U.S. spends more due to higher prices for labor, goods, and administrative costs. The study suggests that efforts to reduce health care spending should focus on lowering prices and administrative costs rather than just reducing utilization. The U.S. has lower rates of social spending compared to other countries, but this does not appear to be the main driver of higher health care spending. The U.S. also has higher rates of poverty and lower life expectancy for non-white populations. The study highlights the need for policy reforms to address the high costs of health care in the U.S. while improving health outcomes.