Americans Spend Trillions (Yes, That’s With A T!) On Health Care Each Year

Americans 65 and older accounted for more than 40% of all health care spending in the United States, according to the Institute for Health Metrics and Evaluation at the University of Washington’s School of Medicine.

Researchers examined over 40 billion insurance claims and nearly one billion facility records in a comprehensive study capturing health care spending across 3,110 counties.

While the results aren’t particularly surprising, the numbers are staggering. In 2019 alone, total health care spending in the U.S. reached $3.8 trillion. That amount is expected to nearly double to $7 trillion by 2031.

Other results from the UW study:

• Medicare paid the bulk of older adult health care costs, covering about 63% of expenses for those over 65. Private insurance accounted for about 19% and out-of-pocket expenses represented 12%. Medicaid covered 7%.
• The analysis revealed stark differences in health care spending across the nation. Nassau County in New York recorded the highest per capita spending at $13,332 with Clark County, Idaho among the lowest at $3,410.
• The states with the lowest per capita health care spending were Idaho with $6,028, Utah with $6,147, and New Mexico with $6,368. The states with the highest expenses were Alaska with $9,282, New York with $9,115, and Massachusetts with $9,097.
• Type 2 diabetes proved to be the costliest condition among older adults.

Here’s something that is surprising: Researchers concluded that disparities in health care spending across the states indicates some states have found efficient ways to deliver care without raising costs. They emphasized that regions with the lowest health care spend could guide a national strategy to modernize health care.

What about you? As you prepare your 2024 tax return, has your overall spending on health care gone up? Are you over 65 and worried about costs? Share your experience with Voices for Affordable Health.

###