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KFF Health News Analysis Finds US Health Spending Hit $5.3 Trillion
In a KFF Health News analysis, reporters break down federal data showing U.S. healthcare spending reached $5.3 trillion in 2024, or $15,474 per person, representing 18% of GDP and projected to hit 20% by 2032. The piece attributes rising costs more to prices than to increased illness, noting Americans get half as many in-person doctor visits as peers in other countries. It highlights that federal policy changes, including the One Big Beautiful Bill Act, are shifting costs from government onto households rather than reducing overall spending, while hospital care remains the largest spending category even as prescription drug costs grow fastest. Harvard's Michael Chernew warns spending growth outpacing GDP is financially unsustainable.
Why it mattersState Medicaid agencies and health plans face mounting pressure as federal cost-shifting policies increase the share of healthcare costs borne by low-income households, straining affordability and coverage retention.