money & economicsanalysisOur World in Data

Americans spend far more on healthcare per person than any other G7 country

the gist

Health spending per person in the United States is higher than in any other G7 country, the group of major advanced economies that includes Canada, France, Germany, Italy, Japan and the United Kingdom. The comparison adjusts for differences in living costs, so it measures what people actually buy rather than just currency values. Much of the gap comes from higher prices for medical services, drugs and administration, along with a system in which private insurance and out-of-pocket payments play a larger role than in most peers. The US does not get clearly better health outcomes in return on measures such as life expectancy, which trails most of the group. Other countries achieve lower costs through national budgets, negotiated prices and more centralised purchasing.

so what

The gap shows that high spending does not automatically buy better health, so it is central to debates about how healthcare should be financed and organised.

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