That variance is reflected in huge disparities in health care spending. In 2016, the top 5% of US health spenders accounted for 50% of total spending, or about $50 000 per person. The bottom half of the population, based on health expenditures, accounted for only 3% of total health spending, or $276 per person in 2016. People in both groups buy health insurance, but the benefits they gain from doing so are different.
In addition to helping people stay healthy and improving their health when they get sick, our system of health insurance serves at least 6 functions to enable everyone to benefit from being insured. These functions, however, are not always compatible.