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Health Care Costs Keep Rising … Why and Who Pays?

The U.S. spends more on health care than other large, wealthy countries. Concerns about rising costs aren’t new, yet somehow we keep paying the bill. In this video, KFF’s Larry Levitt explains how we got here, who bears the consequences and why reining in spending systematically may be central to the next big health care debate. KFF’s Larry Levitt, Executive Vice President for Health Policy, explains how we got here, who bears the consequences and why reining in spending systematically may be central to the next big health care debate.

The MIDTERMS

KFF Health Tracking Poll: MAHA and the Midterms

Chemical food additive and pesticide concerns associated with the Make America Health Again (MAHA) movement are shared broadly across the public. But when it comes to voters, health care costs are a higher priority and bigger motivator, even among MAHA supporters, a new KFF Health Tracking Poll finds. When asked to identify their most important health priority for government to address, far more MAHA-supporting voters identify lowering the cost of health care (42%) than other issues more closely associated with the movement.

Health System Tracker

Among adults 18 - 64 with private insurance, mental health and substance use treatment accounted for 10% of all overnight stays at hospitals or other medical facilities in 2023.

Cost and Utilization of Inpatient Mental Health and Substance Use Treatment This analysis describes the most common diagnoses for inpatient treatment and total associated costs.

What Are the Recent Trends in Employer-Based Health Coverage? Employer-sponsored health insurance is the largest source of health coverage for people under 65, but its reach is uneven.

How Does U.S. Life Expectancy Compare to Other Countries? The life expectancy gap between the U.S. and peer countries decreased from 4.1 years in 2023 to 3.7 years in 2024 as U.S. mortality dropped.

How Does Health Spending in the U.S. Compare to Other Countries? While the U.S. still spends the most in total dollars, eight OECD nations had a higher percentage increase in per-person health spending in 2024.

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  • Health Care and the Middle Class: More Costs and Less Coverage

    Report

    This analysis paper examines the availability, affordability and stability of the health insurance coverage of the American middle class, defined as those with incomes of $44,000 to $88,000 for a family of four. It also addresses the growing burden of health care costs for the middle class, the adequacy of today's health insurance plans to protect them from large medical bills, and the difference both make as individuals and families make health care decisions for…

  • Page Two

    Other Post

    Employee Contributions Almost 80% of covered workers with single coverage, and over 90% of covered workers with family coverage make a contribution toward premiums in 2004 (Exhibit C). Workers on average contribute $558 of the $3,695 annual cost of single coverage and $2,661 of the $9,950 annual cost of family coverage toward premiums (Exhibit B). Click on Thumbnail for larger image (opens in a new window) Click on Thumbnail for larger image (opens in a…

  • How Much Does Medicare Spend on Insulin?

    Issue Brief

    The price of insulin, used by people with both Type 1 and Type 2 diabetes to control blood glucose levels, has come under increasing scrutiny as policymakers grapple with rising drug costs. This data note finds spending on insulin by Medicare and beneficiaries enrolled in private Part D drug plans has increased sharply between 2007 and 2017.

  • Health System Dashboard

    Interactive

    The Peterson-KFF Health System Dashboard examines the U.S. health system's performance in four areas: access and affordability, health and well-being, health spending, and quality of care. Users can explore trends over time, as well as disparities and differences across demographic groups.

  • Do People Who Sign Up for Medicare Advantage Plans Have Lower Medicare Spending?

    Issue Brief

    The analysis finds that people who switched from traditional Medicare to Medicare Advantage in 2016 had health spending in 2015 that was $1,253 less, on average, than the average spending for beneficiaries who remained in traditional Medicare (after adjusting for health risk). The findings suggest that the current payment method may systematically overestimate expected costs of Medicare Advantage enrollees. Adjusting payments to reflect Medicare Advantage enrollees’ prior use of health services could potentially lower total…

  • New KFF/Los Angeles Times Survey Highlights the Financial Challenges Facing People with Employer Health Benefits

    News Release

    A new KFF/Los Angeles Times survey of Americans with employer health benefits finds that although most are largely satisfied with their employer plan, many report financial challenges related to their health care costs, particularly among those facing high deductibles or suffering from chronic health conditions. The survey captures the experiences of the roughly 156 million Americans who get their health coverage through their employers, rather than through the individual market or government programs such as…

  • Beneficiaries Who Switch to Medicare Advantage Have Lower Medicare Spending and Use Fewer Services – In the Prior Year – Than Those Who Stay in Traditional Medicare

    News Release

    Medicare Advantage plans gain beneficiaries from traditional Medicare who have lower average spending and use fewer health services than similar beneficiaries who choose to remain in traditional Medicare, according to a new KFF analysis. The analysis finds that people who switched from traditional Medicare to Medicare Advantage in 2016 had health spending in 2015 that was $1,253 less, on average, than the average spending for beneficiaries who remained in traditional Medicare (after adjusting for health…

  • A Generation of Health Care in the United States: Has Value Improved in the Last 25 Years?

    Issue Brief

    Using data from the Health System Dashboard, a new analysis looks at trends in health spending and outcomes in the United States between 1991 and 2016. While many U.S. health outcomes, like life expectancy and disease burden, have improved, the share of GDP devoted to health increased by 40%, and the U.S. still lags behind other countries in many key measures. The analysis is part of the Peterson-Kaiser Health System Tracker, an online information hub dedicated to monitoring and…

  • Updated Health Spending Explorer Features the Latest National Data

    News Release

    The latest data on U.S. health spending are now available on the Health Spending Explorer, an interactive tool that allows users to explore trends in health expenditures by federal and local governments, insurers, service providers, and individuals. The data, which span from 1960 to 2017, are based on the just-released national health spending report from the federal government. Users can build and download custom charts, with options to filter data by type of service and source…