The United States: The World's Highest Healthcare Spending Nation

The United States (US) has the highest average per capita health expenditure globally, driven by the high cost of medical services.

The Organisation for Economic Co-operation and Development (OECD) estimates health spending in 50 countries using purchasing power parity (PPP) to allow for international comparisons.

OECD's health spending calculation includes all spending on health goods and services, encompassing both individual medical services (such as treatment, rehabilitation, and medical product purchases) and public health services (such as disease prevention programs).

The OECD then aggregates health expenditures borne by the government, public/private insurance, and individuals/households.

Using this methodology, the average US health expenditure in 2022 is estimated at US$12,555 per capita, the highest among the 50 countries researched.

In contrast, Indonesia's estimated average health expenditure in 2022 was only US$405 per capita, second lowest among the 50 countries.

According to researchers from the Johns Hopkins Bloomberg School of Public Health, the high per capita health expenditure in the US is influenced by high drug prices, high salaries for doctors and nurses, and substantial hospital administrative costs.

However, this high expenditure is not directly correlated with better public health.

Researchers from The Commonwealth Fund state that many US residents have poor health and lack access to medical services.

"The US is a country without universal health coverage. It has a lower life expectancy than other developed countries, and a high rate of mortality from conditions that are preventable or treatable," stated The Commonwealth Fund in its report *U.S. Health Care from a Global Perspective* (January 2023).

"Affordability is a primary reason why some US residents do not enroll in health insurance programs. High prices also cause nearly half of working-age adults in the US to forgo or delay needed healthcare," it continued.