The problem of health care spending growing faster than incomes is also a problem that plagues the private sector, which explains why total spending on health care in the economy has doubled over the last 30 years to a current level of about 16% of GDP. CBO estimates that this percentage will double again over the next 25 years to 31% of GDP.
Americans widely believe that while the our health system is expensive it is nevertheless the best in the world. However, a
new report from the Organization for Economic Cooperation and Development suggests otherwise.
According to the OECD, the U.S. spends 5% of GDP more on health than France, the nation with the second highest level of health spending among the 30 wealthy countries in the organization. The average for all OECD countries is 8.9% of GDP. We spend $7,290 per person on average versus $2,964 among all OECD countries. Norway, the nation with the second most expensive health system on a per capita basis, spends $4,763. (Currency conversions based on purchasing power parity.)
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Even more significant is the fact that despite spending vastly more on health than any other country, the U.S. has little to show for it in terms of key measures of health resources. For example,
we have fewer physicians per capita than most other OECD countries: 2.43 per 1,000 population versus an OECD average of 3.1. Austria, Belgium, Iceland, Ireland, the Netherlands and Norway all spend at least a third less of GDP on health than the U.S. yet have almost four doctors per 1,000 population.