Infographic: U.S. Healthcare Spending

Last Updated March 3, 2025

Improving our healthcare system to deliver better quality care at lower cost is critically important to our nation’s long-term economic and fiscal well-being.

The rising cost of healthcare is one of the key drivers of our growing national debt, which crowds out important investments in our future economy, including priority areas like education, research and development, and infrastructure.

Although the United States spends significantly more per person on healthcare than other industrialized nations, our health outcomes are no better — and are often worse.

As lawmakers consider changes to healthcare reform, the infographic below highlights some key facts about the American healthcare system. To learn more about possible policy options, see our discussion of healthcare solutions or visit the Peterson Center on Healthcare.

Infographic: U.S. Healthcare Spending

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Tweet: #Healthcare spending (public and private) rose to 18% of our #GDP in 2023. https://ctt.ec/3oYJU+ via @pgpfoundation

Total healthcare spending rose to 18% of the economy in 2023.

Tweet: U.S. per person spending on #healthcare is about 2x the average of other wealthy countries. https://ctt.ec/t8cED+ via @pgpfoundation

United States per capita healthcare spending is nearly 2X the average of other wealthy countries.

Tweet: The U.S. spends more per person on #healthcare than other developed countries, but our outcomes are no better. https://ctt.ec/f_H8s+ via @pgpfoundation

America's health outcomes are generally no better than those of our peers, and in many cases are worse.

Tweet: The estimated waste in U.S. #healthcare spending is more than we spend on K-12 education. https://ctt.ec/Mm3v7+ via @pgpfoundation

Healthcare experts have estimated that 25% of total healthcare spending goes to unnecessary, ineffective, overpriced, & wasteful services.

Tweet: Rising #healthcare costs are a major driver of our rising #NationalDebt. https://ctt.ec/r85x6+ via @pgpfoundation

Healthcare costs are a major driver of increased government spending.

Tweet: Millions of Americans rely on #Medicare, #Medicaid, and #CHIP. https://ctt.ec/bp712+ via @pgpfoundation

Key programs affect millions of Americans.

Further Reading

How Do States Pay for Medicaid?

Medicaid’s role in state budgets is unique, since the program acts as both an expenditure and the largest source of federal support in state budgets.

Surgeons working in operating room

How Does Government Healthcare Spending Differ From Private Insurance?

Government insurance programs, such as Medicare and Medicaid, made up 45 percent, or $1.9 trillion, of national healthcare spending.

Doctors and nurses tend to a hospital patient

7 Key Facts About Rising Healthcare Spending in the U.S.

Healthcare spending in the United States is a key driver of the nation’s fiscal imbalance and has risen notably over the past few decades.