The average American household spent almost $5,000 per person on health care last year. 2  That translates to an annual health care cost of $11,172 per person in 2018 versus just $147 per person in 1960. Health insurance premiums have risen dramatically over the past decade. These revenues are used to fund the different health financing schemes through which healthcare is accessed, such as government schemes, health insurance schemes or household spending. Demand for health services has also increased over time. Data in this article relate to the years 2013 to 2017, the period for which we have produced health accounts statistics compliant with current international definitions. In the OECD, spending was lowest in Mexico at £837 per person and highest in the United States at £7,736 per person. Note that data on OECD.stat are generally presented in US dollars, whereas our statistics have been referenced in pounds sterling. The U.S. now spends nearly five times more per person on health care administration than Canada does. While there are many reasons as to why countries spend different amounts on healthcare, the OECD report that countries spending the most tend to be high-income economies. This includes both government and non-government spending on healthcare. This film illustrates the impact of the pandemic on the mental wellbeing of NHS workers and... Dr Becks Fisher, a GP in Oxford and Senior Policy Fellow at the Health Foundation, reflects on the... Join us 26–28 Jan 2021 for the Rapid evaluation in health care conference, organised by the #ImprovementAnalytics U… https://t.co/ypJPOy3oZc. A new working paper explores for the first time the distribution of both primary and secondary health care costs in England, including GP-prescribed drug cost. Switzerland and the Netherlands are examples of countries where some health services are accessed through the mandatory uptake of private health insurance. Public revenues equate to domestic transfers from government (FS.1), transfers from abroad distributed by government (FS.2) and social health insurance contributions (FS.3). Updated on November 24, 2020 In 2020, the average national cost for health insurance is $456 for an individual and $1,152 for a family per month. An example of how $PPPs have been converted into £PPPs is provided in the annex. The average national monthly health insurance cost for one person on an Affordable Care Act (ACA) plan in 2019 was $612 before tax subsidies and $143 after tax subsidies are applied. Per capita national health expenditures indicate the average cost per person to different payers for various health care services. This represents the proportion of a country’s economic output that relates to healthcare. The UK has one of the largest shares of healthcare spending financed through government schemes (79%) (Figure 4). If you look at all healthcare spending, including treatment funded privately by individuals, the US spent 17.2% of its GDP on healthcare in 2016, compared with 9.7% in the UK. The majority of the health insurance provided in the United States is through employer-sponsored plans. It does not include primarily assistive-based services, which are considered non-health-related long-term care. Government schemes also account for a high share of overall spending in several Nordic countries including Norway, Denmark, Sweden and Iceland, where healthcare services are either managed centrally or at a more local level. Research suggests that the high spending in the United States, compared with other countries, is partly attributable to higher prices and partly because of the consumption of a greater volume of goods and services (PDF, 196KB). The UK’s spending on health-related long-term care was similar to that of France (£569 per person) and Canada (£556 per person) (Figure 6). What about healthcare spending that relates to long-term care? However, while the association between more expenditure on healthcare and longer life expectancy is observable for countries that spent less than £2,500 per person on healthcare, it is harder to discern an association between these factors for higher-spending countries (Figure 8). The U.S. administrative costs came out to $812 billion in … There are a range of approaches to raising revenues to fund healthcare provision.   Depending on whether you have health insurance or not, and where you get your health insurance from, your health care costs may vary. UK spending on hospitals includes outpatient care that in some countries would instead be provided through visits to specialists in ambulatory settings (for example, specialist clinics). At age 60, the average premium is $543. This chart only refers to long-term care services considered part of healthcare expenditure. Other health-related long-term care covers day (HC.3.2) and outpatient (HC.3.3) long-term care services. Spending on governance and financing is highest in the United States, the equivalent of £639 per person. One table uses U.S. dollars per capita. For some countries, statistics to these definitions are produced for 2013 or earlier. The importance of private health insurance in the United States is an important factor in explaining the high level of spending, in particular the associated purchasing, contracting and provider negotiations. This is one of the highest shares of publicly funded healthcare out of the 25 Organisation for Economic Co-operation and Development (OECD) countries with comparable data. It equals 17.7% of gross domestic product. Interventions that focus on better managing these patients in primary care and the community, reducing the need for unplanned and costly hospital admissions, could help reduce costs and improve the quality of care. As a percentage of GDP, UK healthcare spending fell from 9.8% in 2013 to 9.6% in 2017, while healthcare spending as a percentage of GDP rose for four of the remaining six G7 countries. Healthcare expenditure in 2016 was equal to 9.7% of GDP. Monthly premiums for ACA Marketplace plans vary by state and can be reduced by subsidies. This article contains UK health spending data first published in the Healthcare expenditure, UK Health Accounts: 2017 release. In 2017, the UK spent the equivalent of £560 per person on health-related long-term care, which was less than most other northern or western European countries, but a similar amount to France (£569) and Canada (£556). The cost of health care has been on the rise for several years, and in 2018, the average consumer spent $4,968 on health care. However, costs vary among the wide selection of health plans. Spending is converted into pounds sterling and adjusted to account for purchasing power in different countries. The NHS and other tax-based healthcare systems do not tend to have the financing costs typically incurred in health insurance schemes, such as revenues collection (the equivalent of which would be managed centrally in tax-based systems), risk-management, and profits in the case of mandatory private health insurance schemes. In some countries, non-mandatory schemes may also include a small share of healthcare financed from abroad (HF.4). The largest increase in healthcare spending as a percentage of GDP over the period was in the United States, where it rose from 16.3% to 17.1%. Further information on health systems in different countries are available in the Health Systems in Transition series produced by the European Observatory on Health Systems and Policies. Given the £4.3 billion figure from the Carter Review does not include non-staff costs, the costs of other sorts of NHS provider, or costs for the whole UK, total expenditure on overhead and administrative costs incurred in the UK healthcare system is likely to greatly exceed expenditure on healthcare governance and financing displayed in Figure 5. Several Nordic countries (Norway, Denmark, Sweden and Iceland) have larger shares of publicly funded healthcare and, like the UK, operate predominantly tax-funded healthcare systems (see European Observatory on Health Systems and Policies). The OECD has also published preliminary estimates for health spending in 2018. However, some countries, such as Finland and Denmark, buck this trend. Further international comparisons of health spending are available in OECD’s Health at a Glance series of publications and the World Health Organization’s Public Spending on Health. This section looks at the international pattern of associations between health outcomes and healthcare funding. For example, BUPA health insurance costs roughly £34 per month with a £500 excess for our 33-year-old example, but it leaps up to £52 per month for a zero excess. That’s a 101% increase from the roughly $2,500 per person that … Adjusting the same figures above to account for the population, the average annual growth in per person spending between 1949/50 and 2016/17 was about 3.3%, and was 0.6% between 2009/10 and 2016/17. Since 2013, the point at which internationally comparable data are first available for the UK, the percentage of GDP spent on healthcare has fallen slightly, from 9.8% in 2013 to 9.6% in 2017. Please upgrade your browser, REAL Centre: making health and care services more sustainable, Improving national health and care policy, A descriptive analysis of health care use by high cost, high need patients in England, Webinar: A national measure of health: exploring the ONS Health Index, Surviving COVID: The impact of the pandemic on the mental health of NHS workers, Multimorbidity, deprivation and consultation length. For the UK this includes residential and nursing care or home-based care financed privately or through local authorities, care costs reimbursed through the Carer’s Allowance, as well as palliative care and other long-term care delivered through the NHS. In the UK, spending on inpatient long-term care represented two-thirds (66%) of overall health-related long-term care spending, with the remaining expenditure mostly attributed to home-based care. The EU15 is the group of countries that were members of the EU before 1 May 2004. Figures are presented in current prices, unadjusted for inflation. Identifying high-cost, high-need patients and examining the way in which they use health care services might help to design initiatives to reduce costs or to improve efficiency. However, a small amount of public revenues also funds healthcare services accessed through charities. Others have insurance-based systems, where many healthcare services are provided through either government-run social health insurance schemes, or through the mandatory uptake of private health insurance. 1 That average was taken from subsidized employer-based health insurance, which leads the pack in how people receive coverage. : 2018, UK Health Accounts: methodological guidance. Purchasing power parities (PPPs) act as both a currency converter and a spatial deflator, and can be used to express expenditure in a single common currency. Rankings would differ slightly if using OECD projections of expenditure in 2018. Private revenues equate to compulsory and voluntary private health insurance (FS.4 and FS.5), other domestic revenues (FS.6) and direct transfers from abroad (FS.7). Note that the OECD updates their online dataset twice per year to report the latest data submissions from countries. However, these are projections of health spending and so are not used in this article. All EU member states and most other OECD countries measure healthcare expenditure from at least 2014 onwards using SHA 2011 definitions. In 2017, the UK spent the equivalent of £53 per person on healthcare governance and the costs associated with financing healthcare. We would like to use cookies to collect information about how you use ons.gov.uk. How much is spent on healthcare governance and financing? This is due to Switzerland operating a healthcare system where private health insurance is mandatory for citizens. Spending can also be expressed as a percentage of gross domestic product (GDP). However, gains in life expectancy are not limited to these factors, with many other personal health-risk factors likely to be related. Public funding for healthcare in the UK is almost exclusively spent on government-financed healthcare, such as NHS services or certain elements of local authority-funded social care. Around 6% of people … The average cost is just $6,814—15.3% lower than the national average. Health care costs have risen faster than the median annual income. This represents about 13.7% of median income in Delaware. At age 53 the average premium is more than double the base rate, and by 55 the average premium is $446. Read a review of Bupa health insurance here. For the UK, around four-fifths (79%) of health expenditure is paid for through public revenues, mainly taxation. Almost all funding for government schemes in the UK derives from public funds, meaning this share almost equates to the share of public revenues financing healthcare, as discussed in from Section 5. Figures are given in current prices, unadjusted for inflation. The Organisation for Economic Co-operation and Development (OECD) collect prices for a common basket of comparable goods and services from member states, which inform the price relatives of different sectors of the economy across countries. Governance and financing costs shown in Figure 5 exclude overhead expenses associated with the administration or functioning of healthcare providers, for example hospital management or payroll and procurement administration, which are instead included in other healthcare expenditure categories. Comparable data for other countries were retrieved from the Organisation for Economic Co-operation and Development’s (OECD) online statistical database, OECD.stat in August 2019. The relatively low UK spending on governance and financing costs is partly down to the type of health system the UK operates. Hide. Countries such as France, Germany and Japan have healthcare systems based on social health insurance schemes, in which healthcare is operated through one or more insurance funds. Expenditure on residential and nursing care facilities is missing for Australia, Mexico and Slovakia. All content is available under the Open Government Licence v3.0, except where otherwise stated, /peoplepopulationandcommunity/healthandsocialcare/healthcaresystem/articles/howdoesukhealthcarespendingcomparewithothercountries/2019-08-29, Figure 1: UK health spending per person was around the median for OECD member states, Figure 2: UK healthcare expenditure as a share of gross domestic product was the second-lowest of the G7 countries, Figure 3: In almost all OECD countries, at least half of the revenues funding healthcare came from public sources, Figure 4: The UK had one of the largest shares of healthcare financed through government schemes out of OECD member states, Figure 5: The UK spent below the OECD median on healthcare governance and financing, Figure 6: UK spending on health-related long-term care was similar to France and less than most other northern and western European countries, Figure 7: Hospitals were the main providers of healthcare for most OECD member states, including the UK, Figure 8: There is an observable association between higher health spending and increased life expectancy for countries spending up to £2,500 per person on healthcare, Things you need to know about this release. Healthcare expenditure for Australia is an OECD estimate. Receive the latest news and updatesfrom the Health Foundation. In total, Canadians will pay about $500 Canadian money for health insurance, of which about $330 per month will come out of pocket. Taking an international perspective, average life expectancy tends to be longer in countries that spend more on healthcare, with the notable exception being the United States. The overhead expenses associated with the administration or functioning of healthcare providers, such as hospital management or payroll and procurement administration, are included in different healthcare expenditure categories, such as curative or rehabilitative care, both in the UK and other countries. Governance and financing is otherwise known as "Governance and health system and financing administration" (HC.7). This equated to £560 per person and concerns the medical or personal care services for people with chronic health conditions (including old-age and disability-related conditions) where an improvement in health is not expected. The UK spent £197 billion on healthcare in 2017, equating to £2,989 per person. An analysis of UK healthcare spending relative to comparable countries, using data produced to the international definitions of the System of Health Accounts (SHA 2011). The circumstances that influence health outcomes, such as improvements in mortality, are many and the picture is complex. OECD estimates of healthcare expenditure as a share of GDP are available for 2018 on the OECD.stat database. No data on healthcare providers are available for Chile or New Zealand. The share of the economy attributed to healthcare increased slightly in Germany, Canada and Japan, between 2013 and 2017, bringing it closer to the share in France. The cheapest region for personal healthcare costs is the Rocky Mountains, which includes Colorado, Idaho, Montana, Utah, and Wyoming. The United States spend per person is considerably more than any other OECD country and more than two and a half times what is spent per person in the UK. This represents less than 1% of overall healthcare funding. This is comparable to the proportion in Spain, Portugal and Slovenia (Figure 7). In their simplest form, PPPs are simply price relatives that show the ratio of prices in national currencies used to directly compare a basket of goods and services between countries. This group consists of the UK, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain and Sweden. According to data from OECD, the US spent $10,209 on healthcare per capita, or per person, in 2017. Out-of-pocket spending on health insurance increased consistently from 2007 to 2017, with the average cost increasing over … Approximately £9.7m is spent on potentially preventable admissions in the high-cost, high-need patient group, while only £2.9m is spent on potentially preventable admissions in all other patients. Expenditure is converted into pounds sterling and adjusted to account for purchasing power in different currencies. Consequently, most healthcare funding comes from private insurance contributions. In 2017, spending on healthcare in the UK totalled £197.4 billion. Then by dividing expenditure in national currencies by the rebased PPPs converter, health spending in pounds PPPs can be calculated. Analysis identifying the top 5% of users of primary and secondary care services by cost, using a large nationally representative sample in the year 2014/15. 2016 data are used for Australia and Japan. In 2017, the UK spent £2,989 per person on healthcare, which was around the median for members of the Organisation for Economic Co-operation and Development: OECD (£2,913 per person). Registered charity number 286967. Dividing expenditure in a national currency by the expenditure expressed in US dollars (PPPs) gives the PPPs used to convert health expenditure into US dollars, which can be re-referenced into pounds sterling. By the time you reach 65 years old, average healthcare costs are $11.3K per person, per year in the United States. Italy and France were the only other G7 countries for which health spending as a percentage of GDP was lower in 2017 than in 2013. The paper finds that the total mean cost per patient in the high-cost, high-need group (£9,789) was 20.1 times higher than the mean cost for all other patients (£487). Supplemental plans will cost, on average, about $4000 per person. The complexity and difficulty of isolating a specific set of factors has recently been reported on by Public Health England (PHE) in their analyses of what might be driving the recent changes in mortality in England and Wales. If a person … Understanding the relationship between health coverage and cost can help you choose the right health insurance for you. Some countries, like the UK, have NHS-based healthcare systems, where most services are financed and accessed through government schemes. The other table uses 2011 PPP international US … Despite health spending increasing every year during this period, by an average annual rate of 3.5% in current price terms, the rate of growth in the wider economy was faster, at an average annual rate of 3.9% in current price terms. The analysis looks at the association between life expectancy and lifestyle factors (such as smoking, drinking and healthy eating), socioeconomic factors (such as income, education and unemployment) and environmental factors, like air quality. In the United States, the average health insurance cost per month is $440 for individuals and $1,100 for families, or $5,280 and $13,200 respectively per year. How does health spending as a share of GDP in the UK compare with other G7 countries? However, of the G7 group of large, developed economies, UK healthcare spending per person was the second-lowest, with the highest spenders being France (£3,737), Germany (£4,432) and the United States (£7,736). You’ve accepted all cookies. Within the bottom 95%, 8% of the mean cost per patient could be considered potentially preventable. 7 … This means that data for some countries may be revised over the coming months and differ from figures used in this article. It is also important to consider that most OECD countries are developed high-income economies and life expectancy gains in lower-income countries can be driven by other factors, such as inequalities. Inpatient long-term care spending tends to be higher than home-based care in most European countries. This is nearly triple the annual average cost of when you're in your 20s and 30s. There are also differences in where healthcare services are typically provided in different countries. Americans on average continue to spend much more for health care—while getting less care—than people in other developed countries. Data are produced to the internationally standardised definitions of the System of Health Accounts 2011: SHA 2011 framework. Mandatory health insurance covers both social health insurance schemes and mandatory private health insurance. Purchasing power parities (PPPs) are the rates of currency conversion that equalise the purchasing power of different currencies by eliminating the differences in exchange rates between countries. The UK’s publicly funded NHS-based health system contributes to the UK having one of the highest shares of publicly funded healthcare (79%) in the OECD. Copyright The Health Foundation 2020. This was done by taking expenditure in the national currency, unadjusted for purchasing power and also in US dollars (PPPs). current health expenditure) including personal health care (curative care, rehabilitative care, long-term care, ancillary services and medical goods) and collective services (prevention and public health services as well as health administration), but excluding spending on investments. The paper finds that the total mean cost per patient in the high-cost, high-need group (£9,789) was 20.1 times higher than the mean cost for all other patients (£487). 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