Burdened by admin

In 2022, the US spent approximately USD 12,555 on healthcare per capita, twice the average of other wealthy countries, and 56% more than second-biggest spender Switzerland. Healthcare costs are driven by utilization (how much healthcare people use) and price. In aggregate, utilization in the US does not differ materially from other wealthy countries and higher prices seem to be the main driver of high healthcare costs. In addition to higher prices for medical procedures and products, the US also has abnormally high administrative costs. Per capita, the US spends approximately USD 925 per year on administrative costs compared to an average of USD 204 across other wealthy countries. That is similar to what the US spends on long-term care per capita, a ratio that is unheard of it other countries.

Source: OECD Health Statistics (July 2023).