Saturday, September 5, 2026

U.S. healthcare spending accounted for 18.4% of the U.S. GDP in 2025

Google Search says:

Is it true that medical expenses accounted for 18.5% of US GDP in 2025?
No, it is not entirely accurate. While some early economic models estimated a slightly higher figure, official data from the Centers for Medicare & Medicaid Services (CMS) reveals that U.S. healthcare spending accounted for 18.4% of the U.S. GDP. [1, 2]
Driven by an post-pandemic surge in the utilization of hospital services and high-cost prescription drugs (such as GLP-1 weight loss medications), national health expenditures spiked by 7.3%. This brought total healthcare spending to $5.7 trillion. [1, 2, 3]
U.S. Healthcare Spending Trajectory
Healthcare spending continues to grow faster than the broader U.S. economy. Federal actuaries project the share of GDP dedicated to medical expenses will continue to climb steadily over the next decade: [1, 2]
  • 2024: 18.0% of GDP ($5.3 trillion)
  • 2025: 18.4% of GDP ($5.7 trillion)
  • 2026 (Projected): 18.6% of GDP ($5.9 trillion)
  • 2034 (Projected): 20.6% of GDP (~$9.0 trillion) [1, 2, 3, 4, 5]
Though the 18.5% figure you mentioned was frequently cited in multi-year baseline projections published by groups like the Peter G. Peterson Foundation, the official actuarial data calculated the final share at 18.4%. [1, 2]
Healthcare Dive
24 Jun 2026 — U.S. healthcare spending spiked 7.3% last year to reach $5.7 trillion, driven by soaring spending on hospital services and pricey prescription drugs like GLP-1s...
Peterson-KFF Health System Tracker
4 Aug 2025 — Out-of-pocket physician and clinical services spending per capita is expected to increase at an average rate of 2.6% annually during the same period. In 2025, p...
Peter G. Peterson Foundation
22 Aug 2025 — The result is a system in which, without reform, costs will continue to increase. Total healthcare costs — including all private and public spending — are antic...
STAT
24 Jun 2026 — Health care accounted for 18.4% of the economy in 2025, up from 18% in 2024. Federal actuaries expect that to tick up again this year, to ...
OECD
13 Nov 2025 — In 2024, the United States spent by far the most on health, equivalent to 17.2% of its GDP – and well above Germany, the next highest spender ( ...
Centers for Medicare & Medicaid Services | CMS (.gov)
24 Jun 2026 — NHE grew 7.2% to $5.3 trillion in 2024, or $15,474 per person, and accounted for 18.0% of Gross Domestic Product (GDP). Medicare spending grew 7.8% to $1,118.0 ...
KFF Health News
25 Jun 2026 — Modern Healthcare: US Health Spending Projected To Hit $9T By 2034: CMS National health expenditures will rise to nearly $9 trillion and comprise 20.6% of gross...
Fierce Healthcare
30 Jun 2025 — CMS study: Healthcare spending likely to grow by 7.1% in 2025 Regulatory CMS study: Healthcare spending likely to grow by 7.1% in 2025 By Paige Minemyer Jun 30,
American Hospital Association
25 Jun 2026 — CMS projects national health spending grew to $5.7 trillion in 2025 | AHA News Secondary Menu AHA Member Center Breadcrumb Home CMS projects national health spe...
Peterson-KFF Health System Tracker
4 Aug 2025 — CMS actuaries' estimates of total health expenditures from 2010 and 2015 projections extended out through 2033 indicate that health spending is now expected to ...

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