US spends an unhealthy amount on health care

There is little prospect of getting the Federal deficit under control in the long-term unless spending on health care is reined in or, at the very least, not allowed to continue growing at a faster pace than nominal GDP. More generally, this is a problem not just for the public sector but the private sector as well. The latest figures from the OECD show that the US devotes almost 16% of GDP to combined public and private spending on health, a third more than any other country and nearly double the average.