How Much Americans Spend On Healthcare

The causes of high healthcare spending in America are complex. A pay-per-service system incentivizes doctors to prescribe unnecessary tests and treatments, hospitals' billing practices are opaque and exploitative, and private health insurance companies must provide less in coverage than patients pay in if they want to stay profitable. Whatever the reasons, it's clear that most of our national healthcare spending is for older Americans' healthcare needs — unsurprising, given that deadly (and expensive) conditions like cancer and heart disease become increasingly common with age:

The above graph from healthcare site Registered Nursing shows the average annual spending on healthcare for Americans in different age groups, using data from the Department of Health and Human Services. It should be noted that these numbers don't include insurance premiums; they only include direct spending for medical events, "regardless of who is paying it (the insurance company, the individual directly, or some combination between)." Annual per capita spending on medical events rises sharply after age 65. 

Here's how much Americans can expect to spend (or have spent by their insurance provider) cumulatively in each of these age ranges. Since all of these age ranges are different lengths, they're not directly comparable to one another — but it's still striking how much more money is spent on medical events after the age of 65. "Nearly two-thirds of one's healthcare spending takes place after your 45th birthday," notes Registered Nursing.

[Read more at Registered Nursing]