Health care spending in the U.S. surged by 7.5% in 2023, reaching $4.9 trillion, equivalent to $14,570 per capita. This growth rate marked a significant increase from the previous year and was the highest observed since 2003, excluding the spike in 2020 due to the COVID-19 pandemic. The surge was primarily driven by increased utilization of health care services and a historically high insured share of 92.5%. For the first time post-pandemic, health care spending outpaced GDP growth, accounting for 17.6% of the GDP in 2023.
Following the pandemic, health care spending slowed down in 2021 and 2022, aligning more closely with pre-pandemic patterns. However, the acceleration in 2023 saw a substantial rise in health care goods and services usage. Notably, hospital care and physician services were among the largest categories of health spending, with average annual growth rates of 5.3% from 2014 to 2023. Prescription drugs and clinical services also experienced significant growth rates during this period.
Personal health care spending in 2023 witnessed the largest annual increase since 1990, with a notable rise in spending on prescription drugs and hospital care. Spending on physician and clinical services also showed substantial growth rates compared to the previous year. The report further delves into a detailed breakdown of spending by various categories and sources of funds, including private health insurance, Medicare, and Medicaid.
The United States expended nearly $4,866.5 billion on health care in 2023, encompassing hospital care, physician services, prescription drugs, clinical services, and other related costs. The report also evaluates government administration costs, public health activities, and investment spending in the health care sector.
From a historical perspective, health care spending trends have been closely monitored, with the report drawing comparisons to pre-pandemic years and highlighting the impact of the COVID-19 outbreak on health care expenditure patterns. The rise in health care spending in 2023 reflects a dynamic landscape influenced by evolving health care needs and policy changes.
The AMA’s latest Policy Research Perspective sheds light on the intricacies of U.S. health spending in 2023, emphasizing the critical role of health care delivery costs and the broader implications for the health care system. As the health care landscape continues to evolve, understanding these trends is vital for policymakers, health care providers, and the public to navigate the complexities of the health care sector.
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