US health spending rose 7.5% in 2023 to $4.9 trillion, or $14,570 per person. This growth rate is significantly higher than the 4.6% rise in 2022, and is the highest growth rate observed since 2003 (8.5%), with the exception of a 10.4% increase in 2020 due to the Covid-19 pandemic. After the pandemic, healthcare spending slowed down in 2021 and 2022, with the overall trend similar to pre-pandemic trends. The acceleration in 2023 was driven by a higher use of healthcare products and services and historically high 92.5% insurance shares*. For the first time since the pandemic, healthcare costs growth (7.5%) surpassed GDP growth (6.6%).
Overall, 2023 was 17.6% of GDP in 2023, similar to pre-pandemic stocks (17.5% in 2019) following an increase in 2020 (19.5%) and 2021 (18.3%).
Policy research perspective
Policy research perspective
The new AMA Policy Research perspective examines US health spending in detail in 2023.
Policy Research Perspective: National Health Expenses, 2023: Growth in Health Expenses surpasses GDP for the first time since the pandemic as a Use (PDF)
Medical expenses explained
Medical expenses explained
The US spent $48666.5 billion on healthcare in 2023.
This expenditure can be divided into the following categories:
Hospital carephysician services clinical services prescription drugsnursing care healthhome Health Careother Personal Health Care Costgovernment Administration: Health insurance costs including all administrative costs associated with personal health insurance guarantees: The difference between what insurance companies incur in premiums and how much benefits are paid. This includes administrative costs, additions to reserves, credits and dividends on tax rates, tax and fees on premiums, net underwriting profit or losses on government public health activities.
Hospital services and physician services are two of the biggest categories of health spending. From 2014 to 2023, both had an average annual growth rate of 5.3%. In comparison, prescription drugs and clinical services experienced an average annual growth rate of 5.7% and 6.6%.
In 2023, personal healthcare costs achieved the largest annual growth since 1990, increasing by 9.4% overall. In particular, spending on prescription drugs and hospital care increased by 11.4% and 10.4%. Expenses on physician and clinical services increased by 7.6% and 7.0%. These growth rates were significantly higher than in 2022.
This report discusses this breakdown in more detail and evaluates spending by funding sources (i.e. private health insurance, Medicare, Medicaid, etc.) and sponsors (i.e. federal government, households, private companies, etc.).
*Martin, A. B., Hartman, M., Washington, B., Catlin, A. , and the National Health Expenditure Accounts Team. (2025). National Health Expenses in 2023: Growth has increased as insurance coverage and use increases. The article examines national health expenditures in 2023. Health Issues, 44(1), 12-22.
Previous policy research perspective
Previous policy research perspective
Policy Research Perspective: National Health Expenses, 2022: Return to Pre-Pandemic Growth Rates for Slowing Expenditure on Physician Services (PDF) Policy Research Perspective: 2021: The decline in pandemic-related government spending will be an eight-fold decrease of growth for total growth. Government expenditures related to the Covid-19 Pandemic (PDF) policy research perspective: National Health expenditure, 2019: Preparing the perspective of the Pandemic (PDF) policy research, despite an increase in individual health expenditures, a stable increase in expenditures: National Health Consumption, 2018 increase in expenditures rely on an increase in private health insurance. 2017: Continuing slowing spending growth (PDF) Policy research perspective: National Health Expense, 2016: Downswing (PDF) Annual Expense Growth Policy Research perspective: 2015: Annual Expense Growth Rate (PDF) Policy research perspective: 2007: PORICITION INSPRENTIS since 2007, 5% outlook: National Health Expense, 2013: Another year, Another record for growth (PDF) Policy research perspective: What is behind the recent spending slowing? Summary of the literature attempting to explain it (PDF) Policy research perspective: Recent slowdown in health spending growth (PDF) Policy research perspective: National health spending, 2010: Slow continuation of growth (PDF) Policy research perspective: National health spending: What do they measure? What are those new? What are the trends? (PDF)
