National Health Spending Almanac — 2025 Edition

National Health Spending: 2025 Edition provides a detailed look at national health spending in 2023, projections for the next decade, and age and gender data as of 2020.

National health care spending totaled $4.9 trillion in 2023, or $14,570 per person. In 2023, health care spending increased 7.5%, up from the 4.6% increase in 2022. Per capita, health spending increased 7.0% in 2023. Health care accounted for 17.6% of GDP in 2023, similar to 2022 (17.4%). GDP growth in 2023 (6.6%) was lower than the increase in health spending (7.5%).

Key findings about US health spending in 2023 include these:

• The federal government financed about a third (32%) of the nation’s health spending. Households (27%), private business (18%), and state and local governments (16%) also shared in the financing.
• Hospital care and physician and clinical services together accounted for half of health spending. Spending on both hospital care and physician and clinical services increased in 2023 (10.4% and 7.4%, respectively).
• Prescription drug spending increased 11.4% in 2023, more than the 7.8% increase in 2022. Prescription drugs represented 9.2% of health spending.
• The net cost of health insurance accounted for 6.2% of health spending and increased 7.2% in 2023.
• Public health insurance, Medicare (21%), Medicaid (18%), and other public programs (4%) paid for 43% of health spending, whereas private insurance paid for 30%.
• Private health insurance spending increased 11.5%, much higher than the 6.8% increase in 2022. Overall Medicaid spending increased 7.9%. Federal Medicaid spending increased 3.6% while state and local Medicaid spending increased 18.4%.
• Out-of-pocket spending — for copays, deductibles, and goods and care not covered by insurance — rose 7.2% in 2023 and accounted for 10.4% of health spending.

The quick reference guide on national spending is available for download below. NOTE: The full health spending Almanac report for 2024 is available below. The updated full report for 2025 will be published later this year.

These materials are part of CHCF’s California Health Care Almanac, an online clearinghouse for key data and analyses describing the state’s health care landscape. To see past editions of this almanac, contact us.

Authors & Contributors

Katherine Wilson

Katherine Wilson is an independent consultant specializing in health insurance markets and health care costs. She is the author of numerous publications and reports, including CHCF’s series of reports on California health insurers.