Health spending distribution of U.S. state and local government 2013-2021
Health spending distribution
Health spending by the state and local government in the United States is divided among four major categories. As of 2021, 36 percent of spending was dedicated to Medicaid, 33 percent to private insurance premiums, 29 percent to other health programs, and three percent to Medicare payroll tax for state and local workers. In 1960, the majority of spending on prescription medications came from the consumer’s pocket, today out-of-pocket spending for prescriptions has decreased to about 13 percent.
Among OECD countries, the United States spends the largest portion of its gross domestic product on health care expenditures, totaling nearly 17 percent in 2022. In comparison, the United Kingdom spent about 11.3 percent of the nation’s GDP on health care. High income countries spend over 6,100 U.S. dollars per capita compared to the world average of around 1,177 U.S. dollars per person. Health care spending in the United States has steadily risen over the last decades. In 1970, 355 U.S. dollars was expended on health care per capita in the United States; by 2021, this figure had risen to 12,591 U.S. dollars per capita. The increase in health care expenditure in the country may lie in parallel with the increase in premiums. Spending for hospitals, physicians, specialists, and dentists are significantly higher than other high income countries. Health care provider prices are especially high in the U.S. due to greater access to medical technologies as well as the obesity epidemic in the country.