Understanding differences in health expenditure between the United States and OECD countries

In 2019, before the impact of COVID-19 on health spending, the United States spent nearly 17% of its national income (GDP) on health. This was by far the highest in the OECD – a full 8 percentage points above the average, and well above the other G7 countries, which ranged from 8.7% in Italy to 11.7% in Germany. Over time, the share of GDP allocated to health care goods and services in the United States has consistently remained around 60% more than the average of the other G7 countries. This means that, on an average per capita basis, each US citizen consumed nearly USD 11 000-worth of health goods and services in 2019. When adjusted for the differences in price levels across countries, this level equates to more than two-and-a-half times the OECD average of just over USD 4 000, and twice as much as the average per capita spending in the other high-income G7 countries.