Final answer:
The United States spends the most on health care among industrialized countries, with 17% of its GDP going to health care costs. Despite this, health outcomes are worse, which may be tied to higher service prices and a primarily privately-run health insurance system.
Step-by-step explanation:
The country that spends the most on health care compared to other industrialized countries is the United States. In 2019, the U.S. spent 17% of its GDP on health care, significantly more than the average of 11% of GDP spent by comparable countries. Despite this high level of spending, the U.S. experiences poorer health outcomes, including the highest infant mortality rate and the shortest life expectancy among 13 developed countries.
One reason for these high costs is that the U.S. has fewer doctors and hospital visits, which suggests that higher prices for health care services may be contributing to the increased spending. Additionally, the United States stands out as the only high-income country where private firms predominantly pay and provide for health insurance. This private system may contribute to higher health care costs due to issues like moral hazard and adverse selection, which could be addressed by potentially increasing government involvement in health insurance provision.