Drivers of high US healthcare spending: an international comparative study

Abstract

It is well known that the USA spends a lot more than any other country on healthcare but it is less known why and how. In this paper, we systematically investigated the healthcare spending differences between the USA and 11 similar OECD developed nations, and found the healthcare spending difference was mainly caused by a combination of lower volume, lower efficiency, and much higher prices in America. Particularly, we estimated Americans received 40% less per capita healthcare volume/quantity. On average, they spent $1977.4 more on insurance billing and payment administration, and the US healthcare delivery system was 27% less efficient. Also, the US healthcare price was about 129% higher than the average of the sampled countries. Based on these research findings, we discuss various implications on the US healthcare reform and future research directions.