In 1955, the U.S. was rocking Elvis, chugging milk, and paying under $100 to deliver a baby. Fast forward to 2025? You might need to refinance your house for that same delivery. This article lays out just how ridiculous the rise in U.S. healthcare costs has been over the last 70 years. Spoiler alert: it’s not pretty.
Healthcare Costs in 1955 vs 2025
Compare healthcare costs between 1955 and 2025 based on medical inflation (~40x increase 🤯).
📈 National Healthcare Spending: A Wild Ride
Year |
Total National Health Expenditure |
Per Capita Spending |
% of GDP |
|---|---|---|---|
1960 |
~$27B |
~$150 |
~5% |
2000 |
~$1.4T |
~$4,800 |
~13.3% |
2023 |
~$4.9T |
~$14,570 |
~17.6% |
Key Takeaway: We went from spending lunch money per person to paying the cost of a used car—every single year—for healthcare.
💸 Baby Delivery Costs: Then vs. Now
Year |
Average Cost to Deliver a Baby (Vaginal) |
C-Section |
|---|---|---|
1955 |
~$90 (nominal) / ~$1,000 (2023 dollars) |
Rare, <$150 |
2023 |
~$14,768 (vaginal) |
~$26,280 |
Why?
- 1955: No epidurals, shared rooms, quick discharge
- 2023: Private rooms, surgical teams, and bills padded by every thermometer and tongue depressor used
💉 Other Popular Procedures & Drug Prices: Then vs. 2023
Procedure / Drug |
1955 Price |
2023 Price |
Notes |
|---|---|---|---|
Appendectomy |
~$400 |
~$16,000 |
That’s 40x growth, folks |
Hospital Stay (1 day) |
~$30 |
~$2,800 |
Includes room, not your soul (that’s extra) |
Insulin (per vial) |
~$1.50 |
~$100–$300 |
2023 caps via legislation helped—finally |
Penicillin (30 tabs) |
~$0.50 |
~$12–$20 |
Still dirt cheap, but no longer a miracle drug |
Hip Replacement |
Not common |
~$40,000 |
Now covered more broadly, but you’ll still limp out |
🔍 What’s Driving the Surge?
- Tech Overload: MRIs, robotic surgery, designer drugs
- Administrative Bloat: Insurance red tape and billing games
- Overuse + Higher Prices: Just because we can do more, we do—and charge more for it
- Coverage Expansion: Medicare, Medicaid, and ACA brought more people in (good) but raised costs (expected)
💡 So What Now?
Healthcare has gone from affordable to absurd. For consumers, this means:
- Higher insurance premiums
- Deductibles that might as well be second mortgages
- Delaying care because you can’t afford it
For policymakers? Your move. Either tackle the root causes or keep kicking the financial can down the road.
Bottom Line:
U.S. healthcare in 2025 costs a fortune compared to 1955—without outcomes to match the price tag. Whether it’s giving birth or filling a prescription, Americans are paying more and more. If we don’t get serious about reform, your grandkids might pay six figures for Tylenol.
Sources: CMS, Peterson-KFF Health System Tracker, BEA, AHRQ, and a calculator for inflation that cried halfway through.
Share this with someone who thinks “back in my day” doesn’t come with receipts.
What Did You Pay For This?