By Laurie Meisler

August 2, 2017

Typically, the more a developed country spends on health care, the longer its people live. The U.S., which spends the most on health care, bucks that trend. Compared to the 35 countries in the Organization for Economic Cooperation and Development, which promotes policies to improve social and economic well-being, the U.S. life expectancy of 78.8 years ranks 27th. It has the fourth highest infant mortality rate in the OECD, the sixth highest maternal mortality rate and the ninth highest likelihood of dying at a younger age from a host of ailments, including cardiovascular disease and cancer.

The U.S. is the most obese country in the OECD, leads in drug-related deaths and ranks 33rd in prevalence of diabetes. Yet 88 percent of Americans say they are in good or very good health, according to OECD statistics. Only 35 percent of Japanese, who have the highest life expectancy in the OECD, regard themselves as healthy or very healthy.

Unlike other countries in the OECD, the U.S. mostly relies on voluntary health insurance to fund health-care costs. Public health insurance, such as Medicare and Medicaid, accounts for 27 percent of coverage. By contrast, the 10 countries with the highest life expectancy depend on voluntary insurance for an average of less than 6 percent of their costs, and government spending for nearly half.

One big reason U.S. health care costs are so high: pharmaceutical spending. The U.S. spends more per capita on prescription medicines and over-the-counter products than any other country in the OECD.

Notes: *Included in per capita spending on health care

**Includes cardiovascular disease, cancer, diabetes and chronic respiratory disease

Methodology: Bloomberg ranked the OECD countries by total expenditure on health, which is the amount each country spends for both individual and collective services. Dollar figures for per capita spending use current prices and current purchasing power parities. (PPPs are the rates of currency conversion that eliminate the differences in price levels between countries.) Expenditure data include personal health care services and expenses, medical goods dispensed to outpatients; prevention and public health services; health administration and health insurance. Spending figures for 2016 are estimated or provisional. Data for related factors are for 2015 or the latest data available.

Infant mortality refers to the number of deaths of infants under one year old. Compulsory/contributory health plans include social health insurance, compulsory private insurance and compulsory medical savings accounts.

Source: OECD, The World Bank, World Health Organization, International Diabetes Federation and Diabetes Atlas

With assistance from Yvette Romero

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Americans Die Younger Despite Spending the Most on Health Care - Bloomberg