Healthcare costs in the United States have been rising drastically over the past several decades. We spend twice as much on healthcare as other wealthy nations, yet our health outcomes are generally not any better — and in many cases worse. What’s worse, healthcare spending is projected to keep rising — faster than inflation, wages, and the overall economy.

Health policy experts point to excessive waste in our healthcare system as one of the culprits behind our high costs — about one-quarter of total healthcare spending goes to unnecessary and wasteful services. The aging of the population and high prices for healthcare goods and services also contribute to rising costs.

Not only does the system result in health outcomes that are generally no better for patients, but its inefficiency also creates enormous challenges for the U.S. economy and federal government. Furthermore, the rise in healthcare costs has consequences for the nation’s fiscal outlook, as the amount and share paid by the federal government has been rising over the past several decades.

Improving our healthcare system to deliver better quality care at lower cost is critically important to our nation’s long-term economic and fiscal wellbeing. Below is a selection of key charts providing an overview of the U.S. healthcare system and how it affects the federal budget.