The American healthcare system operates differently from many others around the world, characterized by high costs to the individual. In fact, it’s the higher prices of drugs, treatments, and hospital procedures that cause the United States to spend more on healthcare than any other developed country in the world, according to a 2019 Johns Hopkins report.
Although expensive, the cost of health care is largely covered by the government. In 2019, 29.0% of all health-related spending in the United States was paid for by the federal government. Slightly less – 28.4% – came from households. State and local governments covered 16.1% of the total cost.
In 2018, the latest year for which national and local data are available, state governments spent $ 885 billion on health care, or $ 2,696 per person. Due to different priorities and budget needs, local government health care costs vary considerably from state to state.
AT determine how much each state spends on your health, 24/7 Tempo examined detailed state government health expenditures provided by the US Census Bureau 2018 annual survey on state and local government finances. Per capita health spending ranges from less than $ 1,100 to over $ 3,600.
States allocate between 17% and 39% of their total budget to health spending. The main categories of health expenditure at the state level include partial expenditure Medicaid coverage, administered by the state university hospitals and medical schools, and other health spending and programs addressing needs such as community welfare, drug addiction, health inspection and pollution control.
In each state, the largest portion of overall health spending goes to public welfare programs. These include Medicare and Medicaid, two government-funded health insurance programs that provide coverage to the elderly, people with disabilities, and people with low incomes.
Globally, increasing health spending appears to increase overall life expectancy. In the United States, however, the relationship between spending and health outcomes appears to be more complicated. COVID-19 pandemic has reduced life expectancy at birth in many states – this is where life expectancy declined even before the pandemic.
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To identify how much each state spends on your health, 24/7 Tempo looked at detailed state government health spending provided by the U.S. Census Bureau’s 2018 annual survey of state and local finances.
State health expenditure in 2018 consists of three components: each state’s public health expenditure, hospital expenditure, and social benefits paid directly to private providers for medical assistance, and hospital and health care.
State public health expenditure includes all public health activities except hospital care. Hospital expenses include the construction and operation of hospitals by each state government and payments to private hospitals.
Per capita spending was calculated using each state’s total spending in these areas and the 2019 American Community Survey (ACS) 2019 annual estimates from the US Census Bureau. The shares of the population aged 65 and over, people living with a disability and insured health are also taken from the ACS and are for 2019