Health care prices in the United States

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Health care prices in the United States of America describe market and non-market factors that determine pricing, along with possible causes as to why prices are higher than in other countries.[1]

Compared to other OECD countries, U.S. healthcare costs are one-third higher or more relative to the size of the economy (GDP).[2] According to the CDC, during 2015, health expenditures per-person were nearly $10,000 on average, with total expenditures of $3.2 trillion or 17.8% of GDP.[3] Proximate reasons for the differences with other countries include higher prices for the same services (i.e., a higher price per unit) and greater use of healthcare (i.e., more units consumed). Higher administrative costs, higher per-capita income, and less government intervention to drive down prices are deeper causes.[4] While the annual inflation rate in healthcare costs has declined in recent decades,[5] it still remains above the rate of economic growth, resulting in a steady increase in healthcare expenditures relative to GDP from 6% in 1970 to nearly 18% in 2015.[3]

  1. ^ Kliff, Sarah; Katz, Josh (August 22, 2021). "Hospitals and Insurers Didn't Want You to See These Prices. Here's Why". The New York Times. Retrieved August 22, 2021.
  2. ^ Cite error: The named reference OECD1 was invoked but never defined (see the help page).
  3. ^ a b CDC-National Center for Health Statistics-Retrieved October 26, 2017
  4. ^ Cite error: The named reference Atlantic1 was invoked but never defined (see the help page).
  5. ^ Cite error: The named reference FRED1 was invoked but never defined (see the help page).