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U.S. Healthcare Spending

The United States spends more per capita than any other industrialised nation. U.S. per capita healthcare expenditure in 2023 was $13,432, more than $3,700 above the second-highest and nearly twice the average of industrialized nations ($7,393) (Wager et al., 2025). France spent much less per capita, with a well-established universal health system, but experienced similar good health outcomes.

One of the most notable distinctions is the funding and organization of the health system. America is largely privatised and fragmented; employer-sponsored coverage, private payers, and several public programs rely heavily on it. Administrative inefficiencies, high-cost drugs, and decreased government price controls are some drivers of increased costs (Wager et al., 2025). France, however, has a social health insurance approach, where everyone has access to health care, and the majority of funding comes from wage and income taxes. Its central structure is less costly to manage and has fewer administrative expenses; thus, national health spending is better controlled.

Compared to the size of the economy, U.S. healthcare spending in 2023 accounted for 16.7% of GDP, whereas France and the rest of the countries are typically closer to 11%. The disparity has grown significantly larger since the 1980s, when the U.S. began overtaking its peers in healthcare spending (Wager et al., 2025). Despite this, the health outcomes in the U.S. remain less than optimal, with increased levels of chronic disease, reduced life expectancy compared to similar countries, and pronounced inequities in access and price.

Moreover, although both nations experienced rising healthcare expenditures after the COVID-19 pandemic, post-pandemic expenditure growth in France centered on driving preventive care and primary services, as opposed to the U.S., where disproportionate cost acceleration continued in hospital care and prescription medications (Shi & Singh, 2022). Overall, the U.S. is paying more for worse results. The comparison to France highlights the potential for a more robust and efficient healthcare financing system that can yield improved health outcomes at lower costs.

Reference

Wager, E., McGough, M., Rakshit, S., & Cox, C. (2025). How does health spending in the U.S. compare to other countries? Peterson-KFF Health System Tracker. https://www.healthsystemtracker.org/chart-collection/health-spending-u-s-compare-countries/Links to an external site.

Shi, L., & Singh, D. A. (2022).Essentials of the US health care system. Jones & Bartlett Learning.