April 5, 2023

What is the cost breakdown of healthcare in the US?

The cost of healthcare in the US is staggeringly high and continues to rise. The average American spent over $11,000 in 2020 on healthcare, a figure that has increased by an average of 5.5% each year since 2000. A major portion of these costs come from hospital care, which accounts for 32% of all healthcare spending in the US. Healthcare insurance also plays a major role, with premiums and out-of-pocket expenses making up 28% and 20% of total healthcare spending, respectively. Doctor visits and prescription drugs are also significant contributors, making up 15% and 8%, respectively. With healthcare costs rising, it is becoming increasingly important for Americans to understand the breakdown of the costs they are paying.