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Why Do U.S. Health Care Costs Keep Rising? And Who Pays?

Published on 7/28/2026

This fascinating, short and sweet video from KFF health news explores why healthcare costs per capita in the United States average almost 90% higher than in other high-income countries.

Per the video, those costs have grown unsustainably, from about 7% of GDP in 1971 to 24% of GDP in 2024, leading to intense pressure on individuals (in the form of barriers to care, medical debt, bankruptcy), employees (in the form of higher healthcare premiums, wage stagnation), and others. It drives government desire to cut healthcare spending, and employer desire to shift healthcare costs to workers.

The analysis suggests that lowering health care costs, especially hospital care and prescription drug prices, may ultimately be the only way forward.

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