Rising Expenditures, Declining Results: The United States spends significant amounts on healthcare for relatively poor results due to structural challenges
The United States spent over $4.8 trillion on healthcare in 2023, more than any other nation and nearly double the next highest OECD nation on a per capita basis.49This figure reflects the Centers for Medicare & Medicaid Services (CMS)-reported National Health Expenditures in constant 2023 dollars. It includes spending on health care goods and services, public health activities, government administration, the net cost of health insurance, and investment related to health care. Centers for Medicare & Medicaid Services, “National Health Expenditure Data: Historical, NHE Tables,” “Table 01 National Health Expenditures; Aggregate and Per Capita Amounts,” updated December 13, 2023, accessed December 29, 2023, https://www.cms.gov/data-research/statistics-trends-and-reports/national-health-expenditure-data/historical; Organisation for Economic Cooperation and Development, “Health at a Glance 2023: OECD Indicators: Health expenditure per capita,” accessed December 22, 2023, https://www.oecd-ilibrary.org/social-issues-migration-health/health-at-a-glance-2023_675059cd-en. Despite high expenditure levels, key health outcomes such as life expectancy, maternal mortality, and infant mortality lagged behind other developed countries.50Organisation for Economic Cooperation and Development, “Life expectancy at birth,” accessed January 16, 2024, https://data.oecd.org/healthstat/life-expectancy-at-birth.htm; Organisation for Economic Cooperation and Development, “Health at a Glance 2023: OECD Indicators: Maternal and infant mortality,” accessed January 16, 2024, https://www.oecd-ilibrary.org/social-issues-migration-health/health-at-a-glance-2023_1ea5684a-en. This gap is attributable to systemic factors related to access, disparities in quality of care, and struggles translating innovation into improved health. The United States must address these challenges to bring outcomes in line with spending.
The United States does not have a universal public healthcare option that covers all citizens, which imposes access challenges that harm patients. Despite improvements after the passage of the Affordable Care Act in 2010, 26.4 million Americans remain without insurance coverage.51U.S. Census Bureau, “Table H-01. Health Insurance Coverage Status and Type of Coverage by Selected Characteristics for All People: 2020,” Current Population Survey, 2021 Annual Social and Economic Supplement (CPS ASEC), accessed December 18, 2023, https://www2.census.gov/programs-surveys/cps/tables/hi/2021/h_01.xlsx via https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-hi/hi.2020.html#list-tab-1157843587; U.S. Census Bureau, “Table HIC-4_ACS. Health Insurance Coverage Status and Type of Coverage by State–All Persons: 2008 to 2022,” 2008 to 2022 American Community Surveys (ACS), accessed December 18, 2023, https://www2.census.gov/programs-surveys/demo/tables/health-insurance/time-series/acs/hic04_acs.xlsx via https://www.census.gov/library/publications/2023/demo/p60-281.html. Millions of other Americans are “underinsured” and lack health insurance that covers the cost of medical care sufficiently.52National Center for Health Statistics, “Percentage of adults aged 18 and over who did not get needed medical care due to cost in the past 12 months, United States, 2019—2022,” Centers for Disease Control and Prevention, accessed December 29, 2023, https://wwwn.cdc.gov/NHISDataQueryTool/SHS_adult/index.html. Both uninsurance and underinsurance result in patients delaying or not receiving care, which often leads to worse outcomes and more resource-intensive treatments in the long term.53Reed Abelson, “Higher Bills Are Leading Americans to Delay Medical Care,” The New York Times, February 16, 2023, https://www.nytimes.com/2023/02/16/health/inflation-delayed-health-care.html. Conversely, laws that increase access showed noticeable improvements. For example, states that accepted ACA Medicaid expansion saw infant mortality decrease between 2014 and 2016, while states that rejected expansion saw an uptick in infant mortality.54Chintan B. Bhatt and Consuelo M. Beck-Sagué, “Medicaid Expansion and Infant Mortality in the United States,” American Journal of Public Health 108, no. 4 (April 2018): 565-567, https://doi.org/10.2105/AJPH.2017.304218. Expanding access to healthcare on a large scale is challenging, but enabling patients to receive care when needed is crucial to ensuring a healthy population.
You have a finite number of dollars to spend on your family, at that moment, you’re not thinking of preventing something five years from now.
Dr. Jain
While the United States is the world leader in healthcare R&D investment and innovation,59All dollar amounts are reported in constant 2023 dollars. Organisation for Economic Cooperation and Development, “Gross domestic spending on R&D,” accessed December 18, 2023, https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm. this has not translated into improved population health. Despite increases in the number of drugs approved by the FDA, key metrics, such as life expectancy, are plateauing. While stagnant life expectancy is attributable to many factors, this result suggests that recent breakthroughs may not address the health needs of, be accessible to, and/or be trusted by all patients. For example, developing COVID-19 vaccines utilizing mRNA technology represented a significant innovation during the pandemic. However, initial adoption and deployment were disparate as Asian and white non-Hispanic Americans were vaccinated at higher rates and had lower age-adjusted death rates from COVID-19 than other racial/ethnic groups.60Jennifer L. Kriss,Mei-Chuan Hung, Anup Srivastav, Carla L. Black, Megan C. Lindley, James T. Lee, Ram Koppaka, Yuping Tsai, Peng-Jun Lu, David Yankey, Laurie D. Elam-Evans, and James A. Singleton, “COVID-19 Vaccination Coverage, by Race and Ethnicity — National Immunization Survey Adult COVID Module, United States, December 2020–November 2021,” Centers for Disease Control and Prevention, Morbidity and Mortality Weekly Report 71, no. 23 (June 2022): 757-763, http://dx.doi.org/10.15585/mmwr.mm7123a2, https://www.cdc.gov/mmwr/volumes/71/wr/mm7123a2.htm; Benedict I. Truman, Man-Huei Chang, Ramal Moonesinghe, “Provisional COVID-19 Age-Adjusted Death Rates, by Race and Ethnicity — United States, 2020–2021,” Morbidity and Mortality Weekly Report 71, no. 17 (April 2022): 601-605, http://dx.doi.org/10.15585/mmwr.mm7117e2, https://www.cdc.gov/mmwr/volumes/71/wr/mm7117e2.htm. Vaccination efforts are multi-faceted, but the unequal uptake of COVID-19 vaccines was detrimental to the health of different populations. More promisingly, health disparities are receiving additional attention, as seen by the NIH allocating $5.2 billion, $4.7 billion, and $4.3 billion towards research on Health Disparities, Minority Health, and Social Determinants of Health, respectively, in 2022.61All dollar amounts are reported in constant 2023 dollars. NIH research categories are not mutually exclusive, so individual research projects can be included in multiple categories and amounts for each category do not add up to 100 percent of NIH-funded research. National Institutes for Health, “Estimates of Funding for Various Research, Condition, and Disease Categories (RCDC),” March 31, 2023, accessed December 13, 2023, https://report.nih.gov/funding/categorical-spending#/; the NIH research & disease categories “American Indian or Alaska Native,” “Coronaviruses Disparities and At-Risk Populations,” “Health Disparities,” “Minority Health,” and “Social Determinants of Health” were used to calculate these funding amounts. Although improvement in these areas also requires personnel, infrastructure, and policy to affect change, ensuring the accessibility of medical innovations is an essential step towards a more equitable system.
Population health is a challenging issue dependent upon many variables, within and outside the healthcare ecosystem. It is impossible to address all these factors. Still, the United States has opportunities to improve health outcomes by expanding access, promoting health equity, and prioritizing R&D solutions that meet the needs of all Americans. Doing so will foster a healthier population while bringing outcomes in line with peer nations.