Healthcare as % of GDP Price History
1960–2025 · CMS / BEA
National health expenditures as a share of gross domestic product in the United States, tracked from 1960 to 2025. In 1960, healthcare was 5% of the economy — a substantial but manageable slice. By 2025, it has swelled to roughly 18%, meaning nearly one out of every five dollars produced in the entire country flows through the healthcare system. No other developed nation comes close to spending this much of its GDP on health, yet American life expectancy and health outcomes rank below most peer countries.
Price in 1960
$5.00
Price in 2025
$18.00
Total Change
+260.0%
Years Tracked
65
Healthcare as % of GDP Over Time
Compare to inflation: The chart above shows nominal (not inflation-adjusted) prices. Use the toggle to switch to inflation-adjusted values when available, or try the inflation calculator to convert any amount between years.
Key Insights
- Healthcare went from 5% of GDP in 1960 to nearly 18% by 2025 — more than tripling its share of the economy in 65 years. That growth absorbed trillions of dollars that could have gone to wages, infrastructure, education, or anything else. It is arguably the defining economic story of postwar America.
- The fastest growth happened between 1980 and 1993, when healthcare's share surged from 8.9% to 13.4%. That era saw the explosion of employer-sponsored insurance, the rise of expensive new treatments, and the beginning of the administrative complexity that now defines American healthcare.
- COVID-19 caused a temporary spike to 19.7% in 2020, the highest level ever recorded, as the pandemic simultaneously increased healthcare spending and shrank overall GDP. The ratio dropped back to 17.3% in 2022 as the economy recovered but has started creeping up again.
- The late 1990s were a rare bright spot, with healthcare's GDP share actually falling slightly from 13.4% in 1993 to 13.0% in 1999 — the only sustained decline on record. Managed care deserves most of the credit, though the booming economy also helped by growing the GDP denominator.
Year-by-Year Data
| Year | Price (Percent of GDP) | YoY Change |
|---|---|---|
| 1960 | $5.00 | — |
| 1965 | $5.70 | +14.0% |
| 1970 | $6.90 | +21.1% |
| 1975 | $7.90 | +14.5% |
| 1980 | $8.90 | +12.7% |
| 1981 | $9.30 | +4.5% |
| 1982 | $9.90 | +6.5% |
| 1983 | $10.10 | +2.0% |
| 1984 | $10.00 | -1.0% |
| 1985 | $10.10 | +1.0% |
| 1986 | $10.20 | +1.0% |
| 1987 | $10.40 | +2.0% |
| 1988 | $10.70 | +2.9% |
| 1989 | $11.10 | +3.7% |
| 1990 | $12.10 | +9.0% |
| 1991 | $12.70 | +5.0% |
| 1992 | $13.10 | +3.1% |
| 1993 | $13.40 | +2.3% |
| 1994 | $13.30 | -0.7% |
| 1995 | $13.40 | +0.8% |
| 1996 | $13.20 | -1.5% |
| 1997 | $13.00 | -1.5% |
| 1998 | $13.00 | +0.0% |
| 1999 | $13.00 | +0.0% |
| 2000 | $13.30 | +2.3% |
| 2001 | $13.90 | +4.5% |
| 2002 | $14.70 | +5.8% |
| 2003 | $15.20 | +3.4% |
| 2004 | $15.30 | +0.7% |
| 2005 | $15.50 | +1.3% |
| 2006 | $15.50 | +0.0% |
| 2007 | $15.70 | +1.3% |
| 2008 | $16.30 | +3.8% |
| 2009 | $17.30 | +6.1% |
| 2010 | $17.40 | +0.6% |
| 2011 | $17.30 | -0.6% |
| 2012 | $17.20 | -0.6% |
| 2013 | $17.20 | +0.0% |
| 2014 | $17.30 | +0.6% |
| 2015 | $17.60 | +1.7% |
| 2016 | $17.80 | +1.1% |
| 2017 | $17.70 | -0.6% |
| 2018 | $17.60 | -0.6% |
| 2019 | $17.60 | +0.0% |
| 2020 | $19.70 | +11.9% |
| 2021 | $18.30 | -7.1% |
| 2022 | $17.30 | -5.5% |
| 2023 | $17.60 | +1.7% |
| 2024 | $17.80 | +1.1% |
| 2025 | $18.00 | +1.1% |
Sources & Methodology
National health expenditure as a percentage of GDP, from the Centers for Medicare & Medicaid Services National Health Expenditure Accounts. Total health spending includes hospital care, physician services, prescription drugs, nursing home care, dental, home health, medical equipment, public health, administration, and research. GDP data comes from the Bureau of Economic Analysis.
Primary source: CMS / BEA
For a full explanation of how we collect and adjust data, see our methodology page.