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How Much Do Rich Countries Spend on Healthcare?

How Much Do Rich Countries Spend on Healthcare?

According to the OECD data, the United States spends close to $14,885 per person on healthcare every year. That is not just the highest number, it is far ahead of everyone else. In fact, it is almost fifty percent higher than the country in second place, Switzerland, which spends around $9,963. After the US and Switzerland, a group of wealthy European countries follow closely behind.

Norway, Germany, and the Netherlands all spend more than $8,000 per person each year. This shows that it is mostly wealthy Western nations, especially in Europe and North America, that spend the most on healthcare.

Key Takeaways

  • The United States spends far more per person on healthcare than any other country, and the gap between it and the rest of the world is very large.
  • Several major and well-respected economies, including Japan, Spain, and Italy, actually spend less than the OECD average every year.
  • A country’s size does not decide how much it spends on healthcare. Smaller nations like Luxembourg and Ireland spend more per person than many much bigger countries.

Healthcare Spending Per Capita

The table below shows healthcare spending per person in purchasing power parity (USD PPP) for selected OECD countries. The figures are based on the latest data published by the Organisation for Economic Co-operation and Development (OECD).

RankCountryHealth Expenditure per Capita (USD PPP)
1🇺🇸 United States14,885
2🇨🇭 Switzerland9,963
3🇳🇴 Norway9,393
4🇩🇪 Germany9,365
5🇳🇱 Netherlands8,436
6🇦🇹 Austria8,401
7🇱🇺 Luxembourg8,087
8🇸🇪 Sweden7,871
9🇮🇪 Ireland7,813
10🇧🇪 Belgium7,750
11🇦🇺 Australia7,469
12🇫🇷 France7,367
13🇨🇦 Canada7,301
14🇩🇰 Denmark7,071
15🇮🇸 Iceland6,770
16🇬🇧 United Kingdom6,747
17🇫🇮 Finland6,655
18🇳🇿 New Zealand6,097
19🌍 OECD38 Average5,967
20🇯🇵 Japan5,790
21🇸🇮 Slovenia5,527
22🇪🇸 Spain5,346
23🇵🇹 Portugal5,212
24🇮🇹 Italy5,164
25🇨🇿 Czechia5,014
26🇰🇷 Korea4,797
27🇮🇱 Israel4,352
28🇵🇱 Poland4,284
29🇱🇹 Lithuania4,259
30🇸🇰 Slovak Republic4,021
31🇪🇪 Estonia3,768
32🇨🇱 Chile3,749
33🇬🇷 Greece3,607
34🇱🇻 Latvia3,411
35🇭🇺 Hungary3,303
36🇦🇷 Argentina*3,234
37🇧🇬 Bulgaria*2,860
38🇭🇷 Croatia*2,815
39🇷🇴 Romania*2,311
40🇹🇷 Türkiye*2,309
41🇨🇷 Costa Rica*1,935
42🇧🇷 Brazil1,898
43🇨🇴 Colombia1,877
44🇲🇽 Mexico1,588
45🇿🇦 South Africa*1,345
46🇨🇳 China*1,223
47🇹🇭 Thailand*1,102
48🇵🇪 Peru*959
49🇮🇩 Indonesia*417
50🇮🇳 India*334

The OECD average stands at $5,967 per person. Any country above this line is spending more than what is typical among these developed nations, and any country below it is spending less. Several well-known and historically important countries actually fall below this average. Japan, Spain, Portugal, Italy, and Czechia are all part of this group. This is surprising, since these are countries with long histories, strong economies, and healthcare systems that are often praised around the world.

United States

The US sits alone at the very top of this list, spending close to $15,000 per person on healthcare each year. This is much higher than any other country in the OECD. High healthcare costs, expensive medical services, and greater use of private health insurance all contribute to this level of spending.

Switzerland

Switzerland is the second-highest spender at USD PPP 9,963 per person. The country has on of the highest-quality healthcare systems in the world that combines private health insurance with strong government regulation.

Germany

Germany spends USD PPP 9,365 per person on healthcare. It has one of the world’s oldest universal healthcare systems that give most people access to medical care through public health insurance.

Japan

Japan is one of the largest economies in the world and is well known for having one of the longest life expectancies on earth. Yet it spends less than the OECD average, at $5,790 per person. This shows that a country does not need to spend huge amounts of money to keep its people healthy and living long lives.

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United Kingdom

The UK is known worldwide for its National Health Service, often simply called the NHS. It spends $6,747 per person each year, which puts it a little below several of its European neighbors like Germany and France. Still, this number sits comfortably above the OECD average, showing that the UK continues to invest a solid amount into public healthcare.

Spain and Italy

Both of these countries have large populations and healthcare systems that are often praised internationally. Yet both spend noticeably less than the OECD average, Spain at $5,346 per person and Italy at $5,164 per person.

Luxembourg and Ireland

These two countries are smaller in population but quite wealthy overall. They spend more per person than many much larger countries, with Luxembourg at $8,087 and Ireland at $7,813. Part of the reason likely comes down to their small populations combined with high national income, which naturally pushes the per-person spending number higher, even if the total amount spent nationally is smaller than in bigger countries.

The Bottom Line

The OECD data show the extent to which different countries allocate resources to their health sector. The US allocates substantially higher amounts compared to other countries, while most European countries provide their citizens with healthcare services using much lower expenditures.

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