US 1960 Healthcare Spending 2-16-26

In 1960, U.S. healthcare spending was relatively low, with per capita expenditures at approximately $147. While detailed, age-stratified cost data in 1960 dollars is scarce, national health spending was only 5.2% of GDP, compared to 17.9% in 2010. Costs were rising, driven by increased insurance coverage and rising hospital fees.  

Overall Costs: In 1960, total U.S. health expenditures were $27 billion.

Per Capita Spending: $147 per person in 1960.

Age Distribution Trends: Although precise 1960 figures by age are not provided in the search results, historical trends indicate that, similar to later years, older populations consumed more resources. By the 1960s and early 70s, as health insurance expanded, spending started to rise, particularly for hospital and physician services.

Context: In 1960, 1 in 20 dollars of the U.S. economy was spent on health care. 

In 1960, average per capita healthcare spending in the U.S. was approximately $143 to $147. Detailed age-specific datasets for 1960 are limited as Medicare and Medicaid were not established until 1965; however, historical analyses provide key cost distributions for that era. 

Estimated Costs by Age Group

While exact 1960 dollar amounts for every age bracket are not always recorded in a single table, research from the National Bureau of Economic Research (NBER) and the New England Journal of Medicine (NEJM) highlights these early patterns:

Infants (Under 1 year): Medical spending for the very young was significantly higher than for older children, though it grew most dramatically after 1963.

Children & Young Adults: Generally the lowest spending group. Relative costs typically declined after the first year of life, remaining level until roughly age 20 for females and age 30 for males.

The "Middle-Aged" (1–64 years): This group accounted for the majority of the population but had lower per-person growth rates (roughly 4.7% annually) compared to the very young or very old.

The Elderly (65+ years): Even before Medicare, this group had the highest costs.

1962 Survey: The average medical cost for aged couples paying out-of-pocket was approximately $142, while non-married elderly individuals averaged $270.

Cost of Life Gained: Looking back from 1960, the average cost per year of life gained for a 65-year-old was estimated at $84,700 (adjusted for long-term value). 

Historical Context (1960)

Share of Economy: Healthcare spending represented only 5.2% of the U.S. GDP in 1960, compared to nearly 18% today.

Payment Methods: In the early 1960s, a much larger portion of healthcare was paid for directly out-of-pocket or through private voluntary agencies, especially for the elderly.

Price Drivers: Total national health expenditures were $27 billion. Spending growth in this decade was primarily driven by "non-price factors" like increased access to care and expanding private insurance coverage. 

https://www.google.com/search?q=what+were+us+healthcare+costs+by+age+group+in+1960+google+ai

Comments

In 1960, a hospital room charge was $24 per day including DX and Lab.

Norb Leahy, Dunwoody GA Tea Party Leader