The anomaly of US health care costs
OECD health-spending data and Medicare trustees analysis frame this post: the United States pays more for health care while facing weak performance and near-term Hospital Trust Fund pressure.
Why it matters: financing failure is an aging and longevity problem, not only a budget footnote.
Compare OECD spending charts with the CRR Medicare note. Readers should treat high U.S. costs without matching outcomes as a structural anomaly, not a temporary spike.
For 75 years the extremely inefficient US medical system financing model has had poor performance, and unfortunately, red flags are all we can see into the future. Cicerone
Medicare Finances: A Perspective on the 2025 Trustees Report – Center for Retirement Research
The Medicare Hospital Trust Fund, assuming a recession does not shorten the time frame, is likely due to deplete in 6.5 years. Meanwhile interest expenses 2 years ago were equal to the entire federal Medicare budget. Interest expenses are rising as each year we borrow money to pay for the interest and other expenses. In FY 2025 we borrowed about $13,600 per US household. Medicare Advantage programs happen to cover a healthier portion of the Medicare population, yet their federal costs are much higher per enrollee. Cicerone
Fidelity’s annual 2025 health care cost (out of pocket) in retirement is now $172,500 for a single person, with the average life expectancy at age 65. The estimate does not include other health-related expenses, such as over-the-counter medications, most dental services and long-term care. Cicerone