Bringing U.S. Health Spending in Line with Other Nations an ‘Unprecedented’ Challenge

When it comes to how much Americans spend on health care, the U.S. would have to achieve “unprecedented” spending declines to come into parity with other wealthy nations, finds a study in the December issue of AJPH.

To conduct the study, researchers compared the U.S. against 34 other countries in the Organization for Economic Cooperation and Development, using multiple sources of spending data and projections from 1970 through 2040. In general, the U.S. has spent more per person on health care than every other wealthy nation since 1976, the study reported. In 2018, for example, the U.S. spent about $11,100 per person, while the median per person expenditure among the 34 OECD countries was closer to $4,300.

To come into parity with other high-resource nations, sustained annual declines of 7% and 3.3% would be required by 2030 and 2040, respectively, researchers found, adding that “such declines do not have historical precedent among U.S. states or OECD nations.”

“Excess spending reduces the ability of the United States to meet critical public health needs and affects the country’s economic competitiveness,” the study stated. “Rising health care spending has been identified as a threat to the nation’s health. Public health can add voices, leadership and expertise for reversing this course.”

[Author contact: J. Mac McCullough, College of Health Solutions, Arizona State University, Phoenix, Arizona. “Reduction in U.S. Health Care Spending Required to Meet the Institute of Medicine’s 2030 Target”]