Five Percent of Americans Account for Nearly Half of All Health Spending

In the United States, a disproportionate amount of healthcare spending is concentrated among a minor segment of the population. Recent analysis of data from the 2023 Medical Expenditure Panel Survey (MEPS) reveals that five percent of Americans accounted for nearly half (48%) of all health expenditures. These individuals averaged $72,918 in annual healthcare costs in 2023.

Spending Concentration at the Top

The concentration of healthcare spending becomes even more pronounced when examining the highest spenders. The top one percent of the population accounted for 15% of all healthcare spending, with an average annual cost of $150,467 per person. This highlights the significant financial burden faced by individuals with complex or chronic health conditions.

MEPS: A Key Data Source

The Medical Expenditure Panel Survey (MEPS) is a crucial resource for understanding healthcare costs and utilization in the U.S. MEPS comprises large-scale surveys of families, individuals, healthcare providers and employers. It provides the most comprehensive data available on these critical aspects of the American healthcare system.

Data Release Schedule

Public use data files from the MEPS Household Component, along with accompanying documentation and codebooks, are released annually. The release schedule ensures consistent access to this valuable data for researchers, and policymakers. For example, codebooks for 2023 data, like the HC 247 and HC 251, were released in February and August of 2025, respectively.

Factors Influencing High Spending

The analysis also explores how factors like age, gender, race, insurance coverage, and the presence of health conditions contribute to variations in healthcare spending. Individuals diagnosed with serious or chronic diseases consistently demonstrate significantly higher out-of-pocket expenses.

Part of the Peterson-KFF Health System Tracker

This chart collection is part of the Peterson-KFF Health System Tracker, an online platform dedicated to monitoring and evaluating the performance of the U.S. Health system. The tracker provides accessible data and analysis to inform discussions about healthcare policy and improvement.