Despite having higher healthcare costs overall, the United States has one of the
lowest life expectancies of all developed countries. As of 2018, the United States sent
approximately 16.9% of the GDP on healthcare related costs (The Commonwealth Fund,
2020). Two years later, this percentage rose to 19.7%; according to the National Health
Expenditure Accounts, approximately $4.1 trillion was spent on healthcare costs in 2020,
which accounted for an astounding $12,530 per person (U.S. Centers for Medicare &
Medicaid Services, 2021). By 2028, healthcare spending is expected to grow at an annual
rate of 5.4% and ultimately reach a staggering $6.2 trillion (U.S. Centers for Medicare &
Medicaid Services, 2021). As we have learned this term, the age of the United States
population continues to rise which is leading to increased utilization of Medicare services
for eligible citizens. In 2020, costs associated with Medicare accounted for approximately
20% of the National Health Expenditures and is expected to continue to increase as the age
of the population rises (U.S. Centers for Medicare & Medicaid Services, 2021). This can
and will have significant impacts on healthcare spending. According to CMS estimates, the
population eligible for Medicare will experience a 7.6% increase in growth through 2028.
The average American likely understands the burden that costs associated with healthcare
play in the economy, however, they are probably not fully unaware of the sheer magnitude
of these numbers. Although there is a significant disparity between healthcare costs among
insured and uninsured individuals, both groups can feel the burden of these costs to some
extent. Approximately 46% of insured Americans note that they struggle to afford out of
pocket costs, additionally 27% of insured Americans report difficulty affording their
deductible (Kearney et al., 2021). Due to these costs, many Americans may delay or forgo
seeking the medical care that they require, which can lead to higher costs long term. Not
only is healthcare spending too high but there is certainly the need for additional
healthcare reform to help drive down healthcare costs overall. =
References
Kearney, A., Hamel, L., Stokes, M., & Brodie, M. (2021, December 14).=Americans’
Challenges with Health Care Costs. KFF. Retrieved
from=https://www.kff.org/health-costs/issue-brief/americans-challenges-with-health-
care-costs/
The Commonwealth Fund. (2020, January 30).=U.S. Health Care from a Global
Perspective, 2019: Higher Spending, Worse Outcomes?=Retrieved
from=https://www.commonwealthfund.org/publications/issue-briefs/2020/jan/us-
health-care-global-perspective-2019
U.S. Centers for Medicare & Medicaid Services. (2021, December 15).=Historical.
Retrieved
from=https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-
and-Reports/NationalHealthExpendData/NationalHealthAccountsHistorical
