Healthcare Costs Are Not a Simple Fix

“In 2022, the United States spent $4.5 trillion on healthcare—an astonishing $13,500 per person. That’s a level of spending no other country can fathom. We manage it every year through taxes, insurance premiums, and out-of-pocket expenses. This system touches nearly every part of American life, and we all carry its cost. Private insurance is not the singular villain many assume it to be. It accounts for 29% of healthcare spending, about $1.3 trillion. Even if we eliminated significant administrative overhead, profit, and executive compensation in that sector, the savings would be somewhat marginal compared to the total cost. We would still be spending far more than any other country.”

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From The Incidental Economist: the health services research blog, by Tiffany Doherty, published on 3/15/25