How We Spend $3.4 Trillion

by | Jun 20, 2017


In 2016 we spent $3.4 Trillion on healthcare in America.  Here are some interesting facts about that spending.

  1. $3.4 Trillion is $10,350 for each American.
  2. $3.4 Trillion is 18% of our GDP or 1 out of every 6 dollars spent. That level of healthcare spending is 50% more than the next nearest country.
  3. 5% of the population accounts for over 50% of our healthcare costs!  Who are these 5%? People with one or more chronic illnesses, plus victims of accidents or violent crime.  So, not necessarily the same people each year.
  4. Hundreds of billions of dollars each year are spent treating Americans who are in the last weeks, or days, of life. About 1/3rd of Americans undergo surgery in their last month of life. A 2010 study found that over 25% of Medicare expenses are spent on patients in their last year of life. Another study found that regions of the U.S. with greater use of hospice and palliative care saw a material reduction in healthcare spending. Study: Hospice Study
  5. For all our medical spending we are 42nd in terms of life expectancy (79.80 years).  Link to rankings: CIA world factbook
  6. All prescription drugs only comprise 10% of total U.S. healthcare expenses, while all private insurance costs only make up 7%.

1 Comment

  1. we live in a great country!


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