US personal healthcare spending is measured in trillions — and growing. In 2024, Americans spent about $4.5 trillion on personal healthcare. That’s up 2,005% since 1980, far outpacing overall inflation: overall prices rose 281%. Here’s where the money goes and how spending breaks down. |
|
- The Centers for Disease Control and Prevention defines “personal healthcare” as the goods and services for patients — think prescription drugs, dentistry, and hospital bills. It calculates spending by adding national health spending from all sources and then subtracting the cost of research and equipment and other investments, health insurance administration, and public health programs.
- At the per-person level, spending rose from $943 in 1980 to $13,265 in 2024 (not adjusted for inflation). Hospital care accounts for most personal healthcare spending. In 2024, it totaled $1.6 trillion, or 36.2% of all personal healthcare spending.
|
|
- Home healthcare had the biggest percent increase between 1980 and 2024. Spending rose more than 7,022%, from $2.4 billion to $169.4 billion (not adjusted for inflation).
- Spending on dental services increased the least but still rose more than four times more than overall inflation, growing 1,320% from $13.3 billion to $189.2 billion.
- What’s with the rising costs? Factors that affect healthcare spending include demographic changes (like an aging population), changes in how people use healthcare, and price increases for healthcare-related goods and services.
|
|
The Federal Reserve explained |
|
The Federal Reserve is the nation’s central bank. It was established in 1913 to manage the nation’s monetary policy and respond to stress in the banking system. The Federal Reserve held a scheduled meeting last week, where it opted to leave interest rates unchanged. Here’s more about the Fed and how it affects US monetary policy.
- The Federal Reserve manages federal funds rates and the money supply to support job growth and keep prices steady. Supporting maximum employment and stable prices is known as the Fed’s “dual mandate.”
|
|
- The Fed makes short-term changes in federal funds rates to influence long-term economic growth and stability. It aims to maintain a 2% inflation rate.
- The Fed has a Board of Governors composed of seven members, each nominated by the president and confirmed by the Senate. They supervise the Fed’s key functions, oversee the 12 regional Federal Reserve Banks that cover districts nationwide, and help create financial regulations.
- Board members serve staggered 14-year terms. The president appoints two as Chair and Vice Chair, each of which serve a four-year term in those roles.
- As a fully operational bank, the Federal Reserve has assets. It doesn't receive taxpayer money or Congressional appropriations; it’s a financially self-sustaining entity. The Fed grows its funds through interest on Treasury-backed securities it purchases.
|
|
If you’ve kept up on recent newsletters, then you’re ready to take the weekly fact quiz. |
|
As of September 2025, the nation had 2.1 million active duty and reserve troops. The Army was the largest military branch, accounting for 34% of active-duty troops and 65% of reservists. |
|
|
|
|
