Health Affairs

Health Affairs, 24, no. 4 (2005): 903-914 doi: 10.1377/hlthaff.24.4.903 © 2005 by Project HOPE	New Online   Getting Health Reform Done   After the State of the Union   Incremental Reform   E-Health in Developing World   Most-Read Articles in 2009

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Health Spending

Health Spending In The United States And The Rest Of The Industrialized World

Gerard F. Anderson, Peter S. Hussey, Bianca K. Frogner and Hugh R. Waters

U.S. citizens spent $5,267 per capita for health care in 2002—53 percent more than any other country. Two possible reasons for the differential are supply constraints that create waiting lists in other countries and the level of malpractice litigation and defensive medicine in the United States. Services that typically have queues in other countries account for only 3 percent of U.S. health spending. The cost of defending U.S. malpractice claims is estimated at $6.5 billion in 2001, only 0.46 percent of total health spending. The two most important reasons for higher U.S. spending appear to be higher incomes and higher medical care prices.

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