A dozen facts about the economics of the US health-care system

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A well-functioning health-care sector supports well-being and is a prerequisite for a well-functioning economy. Unfortunately, the problems with U.S. health care—from high prices to excessive administrative costs to insufficient competition—are substantial. These 12 facts about the economics of U.S.

Fact 1: U.S. per capita health-care spending nearly quadrupled from 1980 to 2018. Spending on U.S. health care has grown steadily, rising from $2,900 per person in 1980 to $11,200 per person in 2018 (measured in 2018 dollars)—a 290 percent increase (figure 1a). That growth has slowed at times, as in the mid- to late 1990s and early 2010s, but since 1980 it amounts to annualized growth in real per capita spending of 3.6 percent. From 2005 to 2018, growth has been slower (2.0 percent per year). A small part of the reason for this growth is the aging of the U.S. population. As shown in figure…

A dozen facts about the economics of the US health-care system

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