A Look at Healthcare Spending, Employment, Pay, benefits, and Prices : Spotlight on Statistics: U.S. Bureau of Labor Statistics

June 2016

A look at healthcare spending, employment, pay, benefits, and prices

While Benjamin Franklin once said, "Nothing is more fatal to health than an over care of it," people are now living longer and have growing expectations for the quality and availability of healthcare. As one of the largest industries in the United States, healthcare is steadily growing to meet the needs of an increasing population with an increasing life expectancy. From 2014 to 2024, the demand for healthcare workers is projected to grow faster than the rate for all occupations.

In this Spotlight, we look at the healthcare industry, including how much people spend on healthcare, current and projected employment in the industry, employer-provided healthcare benefits, healthcare prices, and pay for workers in healthcare occupations.

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Average annual expenditures on healthcare per household, 2014
Item	Expenditure
Health insurance	$2,868.04
Blue Cross, Blue Shield	933.46
Fee for service health plan (BCBS)	526.59
Health maintenance organization (BCBS)	344.50
Commercial medicare supplement (BCBS)	45.27
Other health insurance (BCBS)	17.10
Commercial health insurance	594.31
Fee for service health plan (not BCBS)	594.31
Health maintenance organization (not BCBS)	561.21
Medicare payments	430.74
Commercial medicare supplements and other health insurance	194.33
Commercial medicare supplement (not BCBS)	108.93
Other health insurance (not BCBS)	85.40
Medicare prescription drug premium	80.45
Long term care insurance	73.54
Medical services	790.20
Dental services	281.31
Physician's services	189.10
Hospital room and services	115.79
Service by professionals other than physician	59.12
Eyecare services	47.16
Lab tests, x-rays	44.60
Care in convalescent or nursing home	33.54
Other medical care services	19.37
Repair of medical equipment	0.14
Medical care in retirement community	0.08
Drugs	485.51
Prescription drugs	329.67
Nonprescription drugs	99.66
Nonprescription vitamins	56.18
Medical supplies	146.31
Eyeglasses and contact lenses	74.32
Topicals and dressings	41.23
Hearing aids	17.73
Supportive and convalescent medical equipment	5.46
Medical equipment for general use	3.08
Adult diapers	3.02
Rental of supportive, convalescent medical equipment	0.86
Rental of medical equipment	0.61

Average U.S. household spent nearly $4,300 on healthcare in 2014

Healthcare expenditures include spending on health insurance, medical services, drugs, and medical supplies. In 2014, the average U.S. household spent $4,290 on healthcare, or 8 percent of total spending. Among healthcare expenditures, households spent the most on health insurance ($2,868). Medical services represented 18 percent of total healthcare expenditures. Among medical services, households spent the most on dental services ($281).

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Average annual household spending on healthcare by income group, 2014
Income group	Expenditure
Lowest 20 percent	$1,868
Second 20 percent	3,252
Third 20 percent	4,026
Fourth 20 percent	5,082
Highest 20 percent	7,219

Households in top 20 percent of income spend more on healthcare than those in lowest 40 percent

In 2014, households ranked in the top 20 percent in annual income spent an average of $7,219 on healthcare. That was almost 4 times the amount spent by households in the lowest 20 percent ($1,868). The top 20 percent also spent more than the combined amount spent by households in the lowest 40 percent.

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Average annual household spending on healthcare as a percentage of total spending, by income group, 2014
Income group	Share of total annual household spending
Lowest 20 percent	7.9%
Second 20 percent	9.7
Third 20 percent	8.9
Fourth 20 percent	8.4
Highest 20 percent	6.9

Households in top 20 percent of income spend lowest share of total expenditures on healthcare

In 2014, households in the top 20 percent in annual income spent a smaller proportion (7 percent) of their annual spending on healthcare than any other income group. Households in the second lowest 20 percent spent 10 percent of their annual spending on healthcare, the largest share among the five (quintile) income groups.

County employment in hospitals industry, per 10,000 population, 2014 annual averages

262 and higher

177 to 261

135 to 176

97 to 134

96 and lower

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