Healthcare Cost by Year: 2026 Report
U.S. healthcare costs have risen almost without interruption for five decades. This report tracks healthcare cost by year using three measures: total national health spending, spending per person, and healthcare as a share of the economy. Each is shown on its own below.
Total National Health Spending by Year
Total U.S. health spending grew from $74 billion in 1970 to nearly $5.3 trillion in 2024. Spending rose 7.2% from 2023 to 2024, well above the 4.2% average annual growth of the 2010s1.
Health Spending Per Capita by Year
On a per-person basis, health spending reached $15,474 in 2024, up 6.1% from 2023 and roughly 14 times the 1980 figure1. The table below shows per-capita spending by year.
Year | Per Capita Health Spending |
1980 | $1,108 |
1990 | $2,843 |
2000 | $4,855 |
2010 | $8,412 |
2020 | $12,500 |
2022 | $13,493 |
2023 | $14,570 |
2024 | $15,474 |
Health Spending as a Share of GDP by Year
Healthcare now consumes 18.0% of U.S. GDP in 2024, up from 8.9% in 1980. The share peaked at 19.7% in 2020 as the economy contracted during the pandemic, then settled back near its pre-pandemic level. Federal actuaries project it will reach 20.3% by 20331,2.
What Is Driving Healthcare Cost Growth
Two forces drive the annual increase: price and utilization. In 2024, healthcare prices rose 2.7% while the use of services grew 5.4%. Hospitals accounted for 31% of total spending, physicians and clinics 21%, and prescription drugs 8.8%, with retail drug spending growing fastest since 2020 at 7.8% per year.
References
1. Peterson-KFF Health System Tracker, How has U.S. spending on healthcare changed over time, based on CMS National Health Expenditure data, 2024. healthsystemtracker.org
2. Centers for Medicare & Medicaid Services, National Health Expenditure Projections. cms.gov
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