What does the cost of health care look like in the US as compared to other countries?

. 2018 Mar 13;319(10):1024-1039.

doi: 10.1001/jama.2018.1150.

Affiliations

  • PMID: 29536101
  • DOI: 10.1001/jama.2018.1150

Health Care Spending in the United States and Other High-Income Countries

Irene Papanicolas et al. JAMA. 2018.

Erratum in

  • Incorrectly Described Data.

    [No authors listed] [No authors listed] JAMA. 2018 May 1;319(17):1824. doi: 10.1001/jama.2018.4940. JAMA. 2018. PMID: 29715337 No abstract available.

Abstract

Importance: Health care spending in the United States is a major concern and is higher than in other high-income countries, but there is little evidence that efforts to reform US health care delivery have had a meaningful influence on controlling health care spending and costs.

Objective: To compare potential drivers of spending, such as structural capacity and utilization, in the United States with those of 10 of the highest-income countries (United Kingdom, Canada, Germany, Australia, Japan, Sweden, France, the Netherlands, Switzerland, and Denmark) to gain insight into what the United States can learn from these nations.

Evidence: Analysis of data primarily from 2013-2016 from key international organizations including the Organisation for Economic Co-operation and Development (OECD), comparing underlying differences in structural features, types of health care and social spending, and performance between the United States and 10 high-income countries. When data were not available for a given country or more accurate country-level estimates were available from sources other than the OECD, country-specific data sources were used.

Findings: In 2016, the US spent 17.8% of its gross domestic product on health care, and spending in the other countries ranged from 9.6% (Australia) to 12.4% (Switzerland). The proportion of the population with health insurance was 90% in the US, lower than the other countries (range, 99%-100%), and the US had the highest proportion of private health insurance (55.3%). For some determinants of health such as smoking, the US ranked second lowest of the countries (11.4% of the US population ≥15 years smokes daily; mean of all 11 countries, 16.6%), but the US had the highest percentage of adults who were overweight or obese at 70.1% (range for other countries, 23.8%-63.4%; mean of all 11 countries, 55.6%). Life expectancy in the US was the lowest of the 11 countries at 78.8 years (range for other countries, 80.7-83.9 years; mean of all 11 countries, 81.7 years), and infant mortality was the highest (5.8 deaths per 1000 live births in the US; 3.6 per 1000 for all 11 countries). The US did not differ substantially from the other countries in physician workforce (2.6 physicians per 1000; 43% primary care physicians), or nursing workforce (11.1 nurses per 1000). The US had comparable numbers of hospital beds (2.8 per 1000) but higher utilization of magnetic resonance imaging (118 per 1000) and computed tomography (245 per 1000) vs other countries. The US had similar rates of utilization (US discharges per 100 000 were 192 for acute myocardial infarction, 365 for pneumonia, 230 for chronic obstructive pulmonary disease; procedures per 100 000 were 204 for hip replacement, 226 for knee replacement, and 79 for coronary artery bypass graft surgery). Administrative costs of care (activities relating to planning, regulating, and managing health systems and services) accounted for 8% in the US vs a range of 1% to 3% in the other countries. For pharmaceutical costs, spending per capita was $1443 in the US vs a range of $466 to $939 in other countries. Salaries of physicians and nurses were higher in the US; for example, generalist physicians salaries were $218 173 in the US compared with a range of $86 607 to $154 126 in the other countries.

Conclusions and relevance: The United States spent approximately twice as much as other high-income countries on medical care, yet utilization rates in the United States were largely similar to those in other nations. Prices of labor and goods, including pharmaceuticals, and administrative costs appeared to be the major drivers of the difference in overall cost between the United States and other high-income countries. As patients, physicians, policy makers, and legislators actively debate the future of the US health system, data such as these are needed to inform policy decisions.

Comment in

  • Factors Contributing to Higher Health Care Spending in the United States Compared With Other High-Income Countries.

    Parente ST. Parente ST. JAMA. 2018 Mar 13;319(10):988-990. doi: 10.1001/jama.2018.1149. JAMA. 2018. PMID: 29536080 No abstract available.

  • The Real Cost of the US Health Care System.

    Emanuel EJ. Emanuel EJ. JAMA. 2018 Mar 13;319(10):983-985. doi: 10.1001/jama.2018.1151. JAMA. 2018. PMID: 29536081 No abstract available.

  • Challenges in Understanding Differences in Health Care Spending Between the United States and Other High-Income Countries.

    Baicker K, Chandra A. Baicker K, et al. JAMA. 2018 Mar 13;319(10):986-987. doi: 10.1001/jama.2018.1152. JAMA. 2018. PMID: 29536082 No abstract available.

  • Health Care Spending in the United States Compared With 10 Other High-Income Countries: What Uwe Reinhardt Might Have Said.

    Bauchner H, Fontanarosa PB. Bauchner H, et al. JAMA. 2018 Mar 13;319(10):990-992. doi: 10.1001/jama.2018.1879. JAMA. 2018. PMID: 29536083 No abstract available.

  • FAIR to the community.

    Axton M. Axton M. Nat Genet. 2018 Apr;50(4):473. doi: 10.1038/s41588-018-0103-2. Nat Genet. 2018. PMID: 29632375 No abstract available.

  • Comparing Spending on Medical Care in the United States and Other Countries.

    Bazemore A, Petterson S, Levin Z. Bazemore A, et al. JAMA. 2018 Aug 28;320(8):839. doi: 10.1001/jama.2018.8004. JAMA. 2018. PMID: 30167689 No abstract available.

  • Comparing Spending on Medical Care in the United States and Other Countries.

    Goodman LJ, Valenti J. Goodman LJ, et al. JAMA. 2018 Aug 28;320(8):838-839. doi: 10.1001/jama.2018.8016. JAMA. 2018. PMID: 30167690 No abstract available.

Similar articles

  • International health care spending.

    Schieber GJ, Puollier JP. Schieber GJ, et al. Health Aff (Millwood). 1986 Fall;5(3):111-22. doi: 10.1377/hlthaff.5.3.111. Health Aff (Millwood). 1986. PMID: 3098657

  • Suicidal Ideation.

    Harmer B, Lee S, Duong TVH, Saadabadi A. Harmer B, et al. 2022 May 18. In: StatPearls [Internet]. Treasure Island (FL): StatPearls Publishing; 2022 Jan–. 2022 May 18. In: StatPearls [Internet]. Treasure Island (FL): StatPearls Publishing; 2022 Jan–. PMID: 33351435 Free Books & Documents.

  • Performance of UK National Health Service compared with other high income countries: observational study.

    Papanicolas I, Mossialos E, Gundersen A, Woskie L, Jha AK. Papanicolas I, et al. BMJ. 2019 Nov 27;367:l6326. doi: 10.1136/bmj.l6326. BMJ. 2019. PMID: 31776110 Free PMC article.

  • Revisiting out-of-pocket requirements: trends in spending, financial access barriers, and policy in ten high-income countries.

    Rice T, Quentin W, Anell A, Barnes AJ, Rosenau P, Unruh LY, van Ginneken E. Rice T, et al. BMC Health Serv Res. 2018 May 18;18(1):371. doi: 10.1186/s12913-018-3185-8. BMC Health Serv Res. 2018. PMID: 29776404 Free PMC article.

  • Health at advanced age: social inequality and other factors potentially impacting longevity in nine high-income countries.

    Granados JA. Granados JA. Maturitas. 2013 Feb;74(2):137-47. doi: 10.1016/j.maturitas.2012.11.013. Epub 2012 Dec 28. Maturitas. 2013. PMID: 23276601 Review.

Cited by

  • Comparison of catastrophic out-of-pocket medical expenditure among older adults in the United States and South Korea: what affects the apparent difference?

    Kim N, Jacobson M. Kim N, et al. BMC Health Serv Res. 2022 Sep 26;22(1):1202. doi: 10.1186/s12913-022-08575-1. BMC Health Serv Res. 2022. PMID: 36163016 Free PMC article.

  • Understanding patient and physician responses to various cost-sharing programs for prescription drugs in South Korea: A multilevel analysis.

    Son KB, Lee EK, Lee SW. Son KB, et al. Front Public Health. 2022 Aug 31;10:924992. doi: 10.3389/fpubh.2022.924992. eCollection 2022. Front Public Health. 2022. PMID: 36117604 Free PMC article.

  • Correlates of Price Transparency for Healthcare Services in United States Hospitals.

    Younessi DN, Lin JC, Greenberg PB, French DD. Younessi DN, et al. Clinicoecon Outcomes Res. 2022 Sep 9;14:601-606. doi: 10.2147/CEOR.S378475. eCollection 2022. Clinicoecon Outcomes Res. 2022. PMID: 36111322 Free PMC article.

  • Scientific Knowledge of Rheumatoid Arthritis: A Bibliometric Analysis from 2011 to 2020.

    Xu J, Yu J, Jiao W, Chen G, Liu L, Zhang M, Wu D. Xu J, et al. J Pain Res. 2022 Sep 8;15:2761-2772. doi: 10.2147/JPR.S362717. eCollection 2022. J Pain Res. 2022. PMID: 36106313 Free PMC article.

  • Introduction: Health and Medicine in Historical Social Contexts.

    Lupu JA, Ryan M. Lupu JA, et al. Hist Archaeol. 2022 Aug 31:1-6. doi: 10.1007/s41636-022-00367-y. Online ahead of print. Hist Archaeol. 2022. PMID: 36065453 Free PMC article. No abstract available.

MeSH terms

LinkOut - more resources

  • Full Text Sources

    • Ovid Technologies, Inc.
    • Silverchair Information Systems
  • Other Literature Sources

    • Faculty Opinions
    • scite Smart Citations
  • Research Materials

    • NCI CPTC Antibody Characterization Program

How does the cost of healthcare in the US compare to other countries?

In 2021, the United States spent an estimated $12,318 per person on healthcare — the highest healthcare costs per capita across the OECD countries.

Does the United States spend more on healthcare than any other country?

The data through 2020 shows that the U.S. spends significantly more on health care than other nations, both on a per-capita basis and relative to its wealth.

Why are US healthcare costs higher than other countries?

Costs may be far higher for the same medication or procedure in the U.S. than in comparable countries. Some factors that may lead to the high U.S. healthcare costs are hospital consolidation, lack of a national healthcare system, and inadequate industry regulation.

Does the US have the highest health care costs?

The United States has one of the highest costs of healthcare in the world.