Here’s How Much the Middle Class Spent on Healthcare in the 1980s vs. Now
Written by
Gabriel Vito
Edited by
T. Woods
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Healthcare, one of the timeless necessities, has always been a significant factor in household expenses. Comparing expenditures from the 1980s to the present day reveals substantial shifts in both the cost and the structure of healthcare spending over time.
Healthcare Spending in the 1980s
Healthcare was notably less expensive in the 1980s compared to today’s standards. According to data from Health System Tracker, health spending has increased per capita from $2,072 in 1970 to $13,493 in 2022 based on constant 2022 dollars. These health expenditures include medications, hospital expenses, dental services, clinic expenses, insurance, etc.Â
Additionally, the U.S. witnessed a rapid increase in health insurance premiums beginning in the 1980s due to new medical technology and additional costs from insurers and the Medicare program. According to the Consumer Expenditures Survey by the Bureau of Labor Statistics, the average household health insurance cost $854.43 in 1984, adjusted for inflation.
Healthcare Spending Today
Fast-forward to today, and the landscape of healthcare spending has dramatically altered. According to recent data from the BLS and the Centers for Medicare & Medicaid Services (CMS), the average middle-class household now spends about 8-10% of its income on healthcare. This figure includes higher insurance premiums, deductibles, copayments, and out-of-pocket costs for medical services and prescription drugs.
One of the most significant changes has been the rise in insurance premiums. In 2023, the annual health insurance premiums cost $8,435 for single coverage and $23,964 for family coverage, averaging over a 70% increase in just the last 10 years.
Impact on the Middle Class
The increase in healthcare spending continues to have a profound impact on middle-class families. Many households face financial strain due to medical expenses that compound over time, leading to difficult choices between healthcare and other necessities.
Additionally, the financial burden of healthcare has contributed to the broader economic pressures on the middle class. Stagnant wage growth combined with rising living costs in areas such as housing and education further exacerbates the situation.
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