If we break down the numbers, it turns out that medical costs–rather than pharmacy cost–are the key drivers of differences in health care spending per capita. This is the findings from Kaiser Family Foundation (KFF) study comparing US spending against an average from 9 other countries rich countries
(i.e., Austria, Belgium, Canada, France, Germany, the Netherlands, Sweden, Switzerland and the United Kingdom).
While the US spends $513 (+58%) more on drug and medical goods, spending on inpatient and outpatient services are $3906 (+144%) higher in the US compared to the average of these 9 countries.
Hat tip: Adam Fein.