The Health Care Crisis Is Gobbling Up the Economy

Health care spending now represents about 18% of the US economy, meaning that roughly one out of every five dollars spent goes toward health care costs — more than what Americans spend on groceries or housing. The spending is driving massive medical debt.

UCI Health opens Irvine, CA hospital

An ever larger share of US consumer spending is devoted to health care costs: over the previous three months, expenditures on health care increased more than on any other goods or services. (Paul Bersebach / MediaNews Group / Orange County Register via Getty Images)


America’s health care spending is so out of control that the country’s economy is becoming dependent on it.

According to a report released last week by the US Department of Commerce, economic growth swelled in the third quarter of 2025. While that’s theoretically good news, an ever larger share of that consumer spending is devoted to health care costs: over the previous three months, expenditures on health care increased more than on any other goods or services. Health care spending, in fact, contributed more to the country’s gross domestic product growth than any other personal expenses.

About that surge in personal consumption: it's all health insurance pic.twitter.com/YKzXApbN0x

 — zerohedge (@zerohedge) December 23, 2025

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