Health spending measures the final consumption of healthcare goods and services (i.e. current health expenditure) including personal health care (curative care, rehabilitative care, long-term care, ancillary services, and medical goods) and collective services (prevention and public health services as well as health administration), but excluding spending on investments.
Health care is financed through a mix of financing arrangements including government spending and compulsory health insurance (“Government/compulsory”) as well as voluntary health insurance and private funds such as households’ out-of-pocket payments, NGOs, and private corporations (“Voluntary”).
Following are the top 5 countries spending most on Healthcare around the globe :
1. United States Of America :-
U.S. health care spending grew 4.6 percent in 2019, reaching $3.8 trillion or $11,582 per person.
As a share of the nation’s Gross Domestic Product, health spending accounted for 17.7 percent. One reason for high costs is administrative waste.
Hospitals, doctors, and nurses all charge more in the U.S. than in other countries, with hospital costs increasing much faster than professional salaries.
In other countries, prices for drugs and healthcare are at least partially controlled by the government.
But Who pays for healthcare in the United States? There are three main funding sources for health care in the United States: the government, private health insurers and individuals.
Between Medicaid, Medicare and the other health care programs it runs, the federal government covers just about half of all medical spending.
2. Switzerland :-
Estimates of current health expenditures include healthcare goods and services consumed during each year. Switzerland healthcare spending for 2018 was $9,871, a 2.75% increase from 2017.
Switzerland healthcare spending for 2017 was $9,606, a 1.77% increase from 2016. Switzerland’s healthcare system is known as one of the best in the world, but also one of the most expensive.
Part of the reason for Switzerland’s health care costs is that a significant portion of the healthcare system is funded by the government mandated private insurance premiums.
Moreover, Swiss residents are required by law to purchase health insurance (mandatory health insurance, or MHI). No one is denied coverage for pre-existing conditions. The government subsidizes MHI for people with low income.
3. Norway:-
Expenditure on healthcare is about USD $6,647 per head per year (2016), among the highest in the world. It has the highest proportion of nurses and midwives per head in Europe – 1,744 per 100,000 in 2015.
The share of government spending in Norway as a share of total spending on health has remained relatively constant over the last decade between 83 and 85%.
This is one of the highest in the OECD and above the OECD average of 73%. While the availability of public healthcare is universal in Norway, there are certain payment stipulations.
Norway is not completely free. One may have to pay some of the cost of any treatment. If one is a hospital inpatient, treatment is free.
4. Germany:-
Estimates of current health expenditures include healthcare goods and services consumed during each year. Germany healthcare spending for 2018 was $5,472, an 8.3% increase from 2017.
To mark World Health Day on 7 April 2021, the Federal Statistical Office (Destatis) also reports that total health expenditure rose by 19.3 billion euros or 4.9% compared with 2018.
Healthcare in Germany is funded by statutory contributions, ensuring free healthcare for all. In addition, one can also take out private health insurance (Private Krankenversicherung or PKV) to replace or top up state cover (gesetzliche Krankenkasse or GKV).
5. Austria:-
Healthcare spending in Austria, according to the System of Health Accounts, (SHA) totaled $45.4 billion (10.4% of GDP) in 2017.
Public payers cover 75% of the total. Viewed over time, healthcare spending in Austria has been increasing at a rate of 4.9% annually over the past twenty years.
Austria has a state health insurance fund (the Österreichische Gesundheitskasse) that one pays into each month to access state healthcare. One may still have to pay on top of this to use some parts of the healthcare system.