An AMA Policy Research Perspective report on health spending trends found that the U.S. healthcare system is still experiencing rapid spending growth even after disruptions from the COVID-19 pandemic.

National healthcare spending was at nearly $5.3 trillion in 2024, which represented an increase of 7.2% over 2023. Healthcare spending outpaced overall economic growth, accounting for 18% of the U.S.’s GDP. The 2023-2024 growth rates were the highest on record since 2003. At the same time, government spending on public health activities such as vaccination campaigns and disease surveillance fell.

Personal healthcare services represented the largest share of health spending; they accounted for 85.4% of healthcare expenditures, or about $4.5 trillion. Hospital care made up about $1.63 trillion, taking up the largest share of expenses. Hospital spending rose 8.9% and physician services 8.1%.

Private payers financed 31.2% of health spending. Medicare accounted for 21.2% and Medicaid accounted for 17.7%. Health insurance paid for nearly three quarters of health spending. The uninsured rate did slightly rise in 2024, but it remains historically low and significantly down over the last two decades.